Anger trails rise in pump price of petrol to N855/litre
…FG denies ordering NNPCL to raise the price
Lagos Against the backdrop of a new increase in petrol price, marketers have adopted a wide range of price differentials nationwide with petrol stations owned by the Nigerian National Petroleum Company Limited, NNPCL, among the highest pump prices.
While Vanguard learnt that the latest upward adjustment has fixed the base price at N855 per litre, NNPCL Retail stations, especially in Abuja, are selling at N997, the second highest to some independent marketers selling at N1,018. But outside Abuja and Lagos, some independent marketers were selling as high as N1,300/ltr.
Moving across the cities of Abuja and Lagos, Vanguard saw filling stations displaying different prices with NIPCO adjusting from N700 to N955 per litre, Conoil from N660 to N940 per litre, and independent marketers from N930 to N1,018 per litre.
With the latest upward price review under President Bola Ahmed Tinubu, the price of petrol has now risen by over 355%, from N197 per litre on May 29, 2023, to N897 on September 3, 2024. The percentage increase is nearly 400% when considered the highest pump prices by independent marketers.
The latest increase, which took effect just two days after the company acknowledged owing suppliers approximately $6.8 billion, has triggered widespread condemnation across various sections of Nigerians.
Despite the new prices, queues at filling stations remained long yesterday evening, as many outlets were still without the product. This also fueled a thriving black market, with a litre selling at N1,500 in most locations in Abuja and Lagos.
* NNPCL in conflicting messaging
When contacted by Vanguard, NNPC’s Chief Communications Officer, Mr Olufemi Soneye said he was not aware of any price increase.
“I’m not aware of this. Thank you for reaching out. I have no comment on the matter at this time. If there are any updates, I will make sure to inform you. I appreciate your understanding”, he responded via WhatsApp.
An unconfirmed trending message on social media platforms related to NNPCL Retail had earlier hinted of the petrol pump price. The message read: “Good Morning All, This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/itre to N897/liter effective today, 3rd September 2024.
“Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter. Thank you”.
* Dangote fuelenters market
The price hike coincided with the start of petrol supply by Dangote Refinery to NNPC, with NNPC as sole off-taker of the product in the country.
Confirming the commencement of petrol production, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, said the refinery will begin with the supply of 25 million litres of petrol to the Nigerian market.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September, and will subsequently increase this amount to 30 million litres daily from October 2024”, the Authority stated.
It also disclosed that NNPC Limited has reached an agreement to start crude oil sales and supply to Dangote Refinery in local currency.
* Niger State groans
In Minna, Niger State, Vanguard gathered that the sudden hike in pump price of petrol greatly affected economic activities in the state as transport fares went up considerably.
Pump price at two NNPC mega stations along the Eastern bye-pass were dispensing to vehicles at N890 per litre but with long queues of vehicles waiting patiently for their turns.
However, other marketers most of which were, as at Monday morning, dispensing fuel, shut their stations while those selling were dispensing between N1,200 to N1,300 per litre. The hike led to increase in transportation by 100 percent which subsequently paralysed economic activities in Minna.
* IPMAN emphasises product accessibility
Speaking on the development, marketers said while they are not opposed to the price hike, it is important that access to the product is open to all stakeholders.
Speaking to Vanguard,e Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Chinedu Ukadike, said marketers do not oppose the increase in pump price.
He however insisted that the product be made available to all marketers in the downstream sector.
The marketers also expressed dissatisfaction over the decision to make NNPC Limited sole off-taker of petrol from Dangote Refinery, stressing that the arrangement will create monopoly and profiteering.
He said: “The most important thing is that we are asking for availability. We are not against increase in fuel price as marketers but the most important thing is that let the fuel be available to us to buy.
“We think the arrangement between Dangote and NNPC that made NNPC the sole off-taker should be looked into. As major stakeholders and independent marketers, Dangote should be allowed to sell to us directly. The distribution should be opened up so that other stakeholders can buy the product like NNPC.
“This is because NNPC is also a competitor in the downstream sector and it is wrong to single out one competitor amongst others and sell petrol to him such that others will be dependent on one source. We think that this will bring monopoly, profiteering and stagnation in the petrol distribution process.
“It is pertinent that the Federal Government intervenes at this point. Let IPMAN be given the opportunity to also get their products directly because we can quickly distribute, we spread across the country and we are reliable”, he added.
On his part, the National President, IPMAN, Alhaji Garima Abubakar, stated: “We received the message early in the morning yesterday that an additional increase of N240 has been added to the previous price of N568 per litre.
“IPMAN do not have any objections to the increase as NNPCL claimed they were loosing money. We marketers have complied with the increment and also increased our prices at the pump,” he added.
* Private depots shut
A visit to private depots in Lagos showed that no tank farm sold petroleum products yesterday. A marketer who spoke on condition of anonymity said that since NNPCL announced price increase, all depot owners in Lagos refused to sell products, claiming they were waiting to hear from NNPCL on pricing.