Fuel prices across Nigeria are nearing N1,000 per litre, sparking blame between petroleum marketers and retail fuel station owners. As Nigerians struggle with the rising cost of living, this increase in fuel prices is only adding more pressure.
Earlier this week, it was reported that the Nigerian National Petroleum Company Limited (NNPCL) increased fuel prices at its retail outlets across the country. In places like Abuja, Nasarawa, and Kogi, the pump price shot up from N890 to N955 per litre—a N65 increase in just two days.
This jump comes after several fuel stations, including Ranoil, AA Rano, Shema, Empire Energy, and Optima, raised their prices to between N950 and N971 over the weekend in Abuja.
Surprisingly, this price hike is happening at a time when global crude oil prices are actually falling. Brent and West Texas Intermediate crude futures dropped to $68.70 and $66.24 per barrel, respectively.
Industry players are blaming different factors for the sudden increase. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) both shared separate views on what’s causing the problem.
According to IPMAN, the rising cost of the dollar is the major reason depot owners are charging more. The association also pointed to changes in supply and demand in the now deregulated downstream oil sector, along with price adjustments at depots and the Dangote Refinery.
As of last Friday, some of the ex-depot prices were as follows: Dangote Refinery sold petrol at N858 per litre, NIPCO at N870, Aiteo at N855, and Ranoil at N865.
PETROAN, however, places the blame squarely on the Dangote Refinery’s pricing model. The group argues that the way Dangote is setting prices doesn’t reflect what it calls “proper fuel pricing.”
With different players in the fuel supply chain blaming one another, it’s Nigerians who are left to bear the cost at the pump. Whether the cause is the exchange rate, crude oil prices, or refinery pricing, one thing is clear—fuel is becoming more expensive by the day.
