Fuel prices in Abuja have experienced another significant hike, with the pump price of Premium Motor Spirit (PMS), commonly known as petrol, soaring from N537/litre to N617/litre at select filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL). This increase was confirmed by independent oil marketers, who assert that any price adjustment at NNPCL stations signals an impending rise in PMS costs.
“This is because NNPCL is still the major importer of petrol into Nigeria currently, though other marketers are gradually importing the commodity. The price this (Tuesday) morning at some NNPCL stations is N617/litre,” the Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, told a news correspondent.
The situation has escalated since President Bola Tinubu’s announcement on May 29, stating the end of petrol subsidies. This led to a swift surge in petrol prices from N198/litre to over N500/litre on May 30, 2023. Marketers had long warned that without subsidies and with the naira’s floating exchange rate against the dollar, PMS prices could potentially climb as high as N700/litre.
Global factors, such as the increase in crude oil prices, have also contributed to the escalation, as crude oil serves as the primary raw material for producing PMS and other refined petroleum products.
On Tuesday morning, motorists in Abuja rushed to stations still selling at N540/litre, but the news of NNPCL’s higher prices prompted many independent outlets to close their stations temporarily. Others promptly adjusted their pumps to reflect the new N617/litre rate. As of now, neither NNPCL nor the downstream oil sector regulator has made an official statement on the situation.
Beyond the capital city, there are reports that fuel is still being sold for N550/litre in some states like Jigawa. However, the looming prospect of prices reaching N700/litre is sending shivers down Nigerians’ spines, given the potential impact on food and transportation costs.
Many citizens have expressed concern and frustration about the subsidy removal. President Tinubu’s administration has yet to disclose the details of the savings resulting from this move, and the $800 million World Bank loan obtained during former President Buhari’s tenure for fuel subsidy removal palliatives has not been transparently accounted for. This has led to skepticism among Nigerians, including groups like Socio-Economic Rights and Accountability Project (SERAP), about the potential misuse or misappropriation of these funds.
Moreover, the government’s proposal to provide a monthly payment of 8,000 naira to Nigerian families amid rising expenses has drawn criticism. Citizens are struggling to cope with the soaring costs of goods and services, making this proposed assistance seem inadequate and out of touch with the reality on the ground.
Overall, the situation has sparked concern and unease among Nigerians, who are grappling with the adverse effects of subsidy removal and inflation, with the high costs of living impacting their daily lives.
Dear Nigerian, how much is fuel sold for in your area?
