Nigerians were taken aback earlier this week following the announcement of a new petrol pump price by the Nigerian National Petroleum Company Limited (NNPCL).
The NNPCL raised its retail
price from N617 to N857 per litre on Tuesday, further deepening the country's economic
difficulties.
Long queues at petrol stations,
particularly in Abuja, have persisted for over two months. The recent price
hike has worsened the situation, with only a few stations still dispensing
fuel.
There are growing concerns
that, despite the high cost, filling stations are tampering with meters,
including those run by the government, cheating consumers in the process.
This comes as NNPCL management
admitted to facing a debt challenge amounting to $6 billion in its
international supply chain. Since the removal of the fuel subsidy on May 29,
2023, pump prices have fluctuated, with NNPCL maintaining a price of N617 per
litre while other retailers charged even higher amounts.
In a statement, NNPCL's Chief
Corporate Communications Officer, Olufemi Soneye, acknowledged that the debt
crisis has led to the widespread fuel shortages, which are threatening supply
sustainability.
Speculation has been rife that
the company is struggling to meet fuel demands, though the government has
consistently denied continuing any form of subsidy on petroleum products.
The recent developments have led to soaring fuel prices, with private retailers selling petrol for as much as N900 per litre, while the long queues remain unresolved.
The Nigeria Labour Congress
(NLC) has called for an "immediate reversal" of the petrol price
increase, accusing President Bola Tinubu of breaking the trust they had placed
in him, especially concerning the newly agreed minimum wage deal, which the
price hike now undermines.
Similarly, the Network Against
Corruption and Trafficking (NACAT) has condemned the increase, demanding an end
to what it terms the "imposition of toxic economic hardships" by the
current administration.
On the streets of Abuja, many
Nigerians expressed their frustration and disappointment. One businessman, Ejeh
Samuel, lamented how transportation costs had skyrocketed within a single day,
making it difficult to sustain his livelihood.
Taxi drivers echoed these
sentiments, sharing their struggles with fuel shortages and the financial
burden it places on them and their passengers.
Others, like a civil servant at
the Ministry of Agriculture, expressed concerns about the diminishing value of
their wages due to rising transportation and living costs. He criticized the
government for focusing on personal luxuries rather than addressing the needs
of the people.
Energy expert Eleojo Joseph described the price increase as insensitive, noting that Nigerians are already grappling with the pain of the sudden subsidy removal. He suggested that the decision may have been made in bad faith, potentially to undermine Dangote’s refinery. He further explained that NNPCL’s debt and lack of funds have hindered their ability to import fuel, leading to the ongoing scarcity.
In a press briefing on
Thursday, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources
(Oil), assured the public that the fuel crisis would soon be resolved,
following discussions with Vice President Kashim Shettima and NNPCL's Group Managing
Director, Mele Kyari.
It remains to be seen how the
government will tackle the intertwined issues of pricing and fuel availability.
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