ABUJA, Nigeria (ChatnewsTV) — Nigerians woke up Wednesday to the shock of yet another hike in petrol prices, with the cost now ranging between N1,030 and N1,200 per liter. The increase was implemented by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, owned by billionaire Aliko Dangote.
The latest hike saw NNPCL raising fuel pump prices at its outlets in Lagos and the capital, Abuja, from N855 and N897 to N998 and N1,030 per liter, respectively. In Enugu, prices surged even higher, reaching N1,200 and N1,300 per liter, according to checks by Daily Post.
This marks the second price hike since Dangote Refinery began distributing petrol on September 15, 2024, with NNPCL as its sole buyer. Initially priced at N898 per liter, Dangote Refinery’s fuel has now climbed to N977 per liter.
Sources say the price surges are a direct result of the total deregulation of Nigeria’s downstream sector, a move spurred by the introduction of Dangote Refinery into the market. Since the refinery’s entry, fuel prices have spiked from N557 and N617 per liter to N998 and N1,030 at NNPCL stations.
Despite hopes of price relief, particularly after the government confirmed that a Naira-for-crude sales agreement with Dangote Refinery had commenced on October 1, fuel prices have continued to climb, exacerbating Nigeria’s economic challenges.
In May 2023, when President Bola Tinubu assumed office, petrol was priced at N195 per liter. Today, the cost has more than quintupled, peaking at N1,030 per liter as of October 9, 2024.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), attributed the price hike to the government’s decision to heed Dangote’s call for the complete removal of fuel subsidies.
“If indeed we listen to Aliko Dangote’s request in his Bloomberg interview…maybe this is one step to ensuring that the Petroleum Industry Act is implemented,” Gillis-Harry told Daily Post. He also noted the volatility of the oil sector, saying, “Today, it may go higher, and tomorrow it may come down.”
The Independent Petroleum Marketers Association also pointed to deregulation as the driving force behind the price increases.
However, the latest hike has drawn sharp criticism from the Nigerian Labour Congress (NLC), the Centre for the Promotion of Private Enterprise (CPPE), and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
NLC President Joe Ajaero lamented the impact on ordinary Nigerians, stating the price surge would only deepen poverty. CPPE Director Muda Yusuf echoed this sentiment, asserting that Nigeria is not ready for full deregulation. Dele Oye, NACCIMA’s National President, warned that the hike would trigger even more hardship for citizens already grappling with inflation and soaring costs.
Fuel prices have historically had a direct impact on the prices of goods and services in Nigeria. With inflation standing at 32.15% in August, the latest fuel price increase is expected to further push up the cost of living.
