By Adewale Sanyaolu and Adanna Nnamani, Abuja
Nigerians are currently gnashing their teeth as they grapple with renewed frustration exacerbated by the latest hike in petrol prices by the Nigerian National Petroleum Company Limited (NNPC Ltd) and other marketers.
With petrol prices surging to as high as N1,040 per litre at NNPC Ltd’s outlets on Wednesday, many citizens have expressed deep anxiety about the impact on transportation, food, daily expenses and overall economic stability.
Livid Nigerians flooded the cyber space to lament that they were already wallowing in multi-dimensional poverty before being pushed to their final depths of ruin with yesterday’s increase.
Experts also stated that the sudden increase, which follows the deregulation of the downstream petroleum industry, has sparked lamentations across the country, as motorists and businesses alike struggle to adjust to the growing financial burden.
In Lagos, NNPC retail outlets adjusted their pump price from N855 per litre to N998, while those operated by major marketers moved from N890 per litre to N996 and N1,040, depending on the retail outlet.
For retail outlets operated by Mobil, the current price is now N996 per litre, while those operated by Ardova Petroleum moved to N1,040 per litre.
In Abuja and some parts of the north, Daily Sun observed long queues snaking around various NNPC stations in the Central Business Area (CBD), Wuse, and Lugbe.
It was gathered that the price adjustments come in the wake of the NNPC’s decision to terminate its exclusive purchase agreement with Dangote Refinery, allowing other marketers to buy fuel directly from the source.
Lamenting the situation, Mr John Dele, a motorist in Abuja said: “It is unbelievable! N1,040 per liter and we are still facing long queues at the stations. I have spent hours waiting just to fill up. This situation is infuriating! The price goes up, but we are still not getting the service we need.”
Another driver, who simply identified himself as Hamza said: “N1,030 and look at the lines! It feels like a never-ending wait just to get fuel. It is frustrating to see the prices go up while the service gets worse. How are we supposed to manage our daily commutes like this?”
A commuter, Miss Agnes Sani, expressed fears about the potential increase in cost of living as a result of the hike.
“I’m worried that any rise in transportation fares will only add to the burden of living expenses that we are already facing.
“Many of us rely on public transport to get to work, school, and other essential places. If fares go up, it means we have have to allocate more of our limited budgets to transportation, leaving less for other necessities like food, housing, and healthcare. The government really needs to be more empathetic and consider preventing anything that will put more burden on Nigerians at this critical time,” she said .
This increase marks the second upward adjustment implemented by NNPC between September and October.
Daily Sun, on Monday, exclusively reported the planned hike in petrol prices, which was premised on a rise in the exchange rate, hostilities in the Middle East, among other factors.
Things got to a boiling point when NNPC Ltd shut its payment portal against marketers from making further payments for petroleum products.
Again, the current ex-depot price of petrol at the Dangote refinery is now N977 per litre.
Nonetheless, NNPC Ltd, previously the sole off-taker of petrol from the Dangote refinery, has recently stepped back from this exclusive role, allowing both major and independent marketers greater access to the supply chain.
As a fallout of the hike, fuel queues have returned to major parts of the Lagos metropolis as motorists engage in panic buying of the commodity.
Commenting on the development, Managing Director of 11 Plc, formerly Mobil Oil Nigeria Plc, Mr. Tunji Oyebanji, said he believes the price of petrol has finally been deregulated, and the subsidy has finally been eliminated.
“Henceforth, the price of petrol will be determined by market dynamics. This is inevitable as the government could no longer bear the burden of the subsidy. A good measure the government has taken to mitigate the development is the sale of crude oil to local refineries in Naira at a fixed exchange rate. This will protect consumers from the negative impact of fluctuations in exchange rates. The fact that the crude will be refined in local refineries will also save the cost of transporting crude to offshore refineries and transporting refined products back to Nigeria.”
Without these two factors, he said, prices would have been higher, adding that another outcome will be that the incentive to smuggle petrol from Nigeria to neighbouring countries will be greatly reduced. “Henceforth, prices can change at any time, depending on market dynamics. Customers will make informed choices about where to buy from. Operators will need to improve on safety, customer service, and accurate measurement to retain customers.”
“This is also the time for consumers to consider alternative sources of powering their vehicles, like CNG. The era of full competition has come to Nigeria. With time, things will settle down, and people will make informed choices.”
He also urged the government to invest in mass transportation, especially with CNG buses. “Greater incentives should be given in terms of duty waivers on conversion kits and other CNG equipment and vehicles.”