Transport fares within Port Harcourt metropolis have doubled, following the unofficial increment in the pump price of PMS from N650 to N860 per litre.
In the last few weeks, the country has faced fuel scarcity with the product selling between N700 and N900 per litre in different parts of the country, as NNPC Ltd blamed the shortage on financial constraints and backlog of $6billion debt owed petrol suppliers.
In Port Harcourt, the Rivers State capital, fuel is currently being sold between N1,080 and N1,300 depending on the filling station, while NNPC Ltd’s mega stations are dispensing at N855 per litre with extremely long queues.
The hike in fuel price has led to a 100 percent increase in public transport fare as the shortest distance hitherto charged N100 by commercial drivers in Port Harcourt is now N200.
From Choba to Rumuola is now N1200, 100percent increment from hitherto N600; similarly, Choba to Mile III hitherto charged N400 is now N800; Rumuokoro to Choba is now N800 up from N400; Rumuokoro to Mile 1 is now N800 up from N400, Airforce junction to Mile 1 is now N600 up from N300.
Reacting on the development, an energy expert, Dr. Joseph Obele, attributed the fuel price hike to high importation costs, with NNPCL facing debts from purchasing PMS at about N1,300 per liter from the international market.
Although NNPC Limited denied issuing a directive for the price adjustment, allegedly due to pressure from organized labor and industry associations, Obele said major marketers and NNPC Retail outlets were already instructed to adjust their meter prices upward.
He said a critical stakeholder meeting was ongoing in Abuja on the issue, as independent marketers buying petrol from third parties at N980 per liter may maintain high prices, exacerbating inflation and leading to increased commodity prices.
Obele, a former IPMAN Chairman and lecturer, joined calls for NNPC to reconsider any planned price increments, citing concerns about the impact on the inflation index and Nigerians’ welfare.
He said, “The upward review experienced at all NNPCL filling stations yesterday is a clear indication of an unannounced new price regime for PMS. The recent hike in petrol prices is coming from the high Importation cost for buying PMS from the international market, which is now almost N1300 per litre.
“Arising from NNPC importation debt, NNPC Limited then gave an upward review to all NNPC retail outlets yesterday. Major marketers and NNPC retail outlets were instructed to adjust their meter prices upward.
“The NNPC’s subsequent denial of this directive is likely due to pressure from organized labor, NUPENG, IPMAN and PETROAN emergency meeting in Abuja, who threatened to protest if the new prices were not reversed.
“As we speak, there is critical stakeholders meeting ongoing at Abuja in view of finding a possible solution because Nigerians cannot bear any further hardship.
“The price of petrol might remain high if independent marketers continue to buy petrol from third parties at N980 per liter. NNPC Limited has not sold petrol directly to independent marketers in the past three months as the portal for independent marketers is shut down until this hour.
“Any further increment of PMS price will affect the worrisome inflation index which will definitely result to price increment on all commodities in the market.”
