Nigerians have expressed outrage after fuel prices skyrocketed to over N1,000 per litre in several parts of the country. The Nigeria Labour Congress (NLC) and the Organised Private Sector (OPS) have demanded an immediate reversal of the hike, which has added to the mounting pressure on citizens already grappling with economic challenges.
The Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of petrol to N1,030 per litre in Abuja, up from N897. In Lagos, the price jumped to N998 from N868 per litre. Other regions experienced similar increases, with some fuel stations selling at over N1,200 per litre.
This marks the second petrol price increase in one month and reflects a 14.8% or N133 rise. Since the current administration came into power in May 2023, fuel prices have risen by over 430%.
At an NNPCL mega station in Abuja, customers were unaware of the new price until they were informed verbally by attendants. “I am very angry right now. I entered this station thinking their price would be better, only to be told the price had risen to N1,030,” one customer said in frustration.
This latest price hike comes just days after NNPCL ended its exclusive purchasing agreement with the Dangote Refinery, allowing other players in the market to buy fuel directly. Oil marketers have suggested that this move effectively ends the government’s petrol subsidy.
Fuel scarcity has also hit several states as many stations remain closed, further complicating the situation. In some areas, petrol prices reached N1,300 per litre, with reports from Edo, Delta, and Benue states indicating significant increases.
Labour Union Calls for Immediate Action
The Nigeria Labour Congress (NLC) condemned the price hike and urged the government to reverse the increase immediately. NLC President Joe Ajaero criticized NNPCL for what he called an “aberration,” accusing the company of acting as a monopoly and failing to consider the economic realities faced by ordinary Nigerians.
“It needs no stating that the latest wave of increase has grossly altered the calculations of Nigerians once again, at a time when they were reluctantly coming to terms with their new realities. We urge the government to immediately reverse this rate hike,” Ajaero said.
The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, echoed these concerns, stating that the hike would significantly increase production costs for manufacturers. “The second increase in one month will send high costs across the value chain for manufacturers and drive up the prices of locally produced goods,” he said.
Ajayi-Kadir added that this will reduce consumer purchasing power as Nigerians spend more on transportation, leaving less money for other goods.
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- Dangote Refinery Denies NNPCL’s Claim of N898 per Litre Petrol Price, Says Sales Were in Dollars
- Nigerian Government Begins Selling Crude Oil and Petroleum Products in Naira
Economic Experts Raise Concerns
Economists and business leaders have also weighed in on the issue. Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, described the timing of the price hike as “ill-timed” and a failure to consider the economic difficulties facing the country.
“The Nigerian economy is not ripe for full-blown deregulation and market principles on all fronts,” Yusuf said. He recommended that the government prioritize measures to ease the economic burden on citizens before implementing such price increases.
Small business owners are particularly concerned about the lack of notice regarding the price change. Dr. Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, warned that the steep increase could lead to inflation and job losses. “The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand,” Egbesola stated.
Nationwide Impact
In states like Borno and Katsina, petrol prices climbed to N1,250 and N1,100 per litre, respectively, causing transportation fares to increase. In Abuja, the cost of a one-way trip from Lugbe to Wuse jumped from N700 to N1,000. In Kwara, Ilorin residents reported petrol prices at N1,045 per litre at NNPC stations.
Despite these nationwide price hikes, the Dangote Refinery has denied allegations that it raised its ex-depot price to N977 per litre, a move that some had blamed for NNPC’s price adjustment. Senior officials at the refinery described the reports as “fake news.”