Fuel Price: Petrol Marketers Offer Reasons As Filling Stations Hike Prices By N50

• Since the deregulation of the petroleum industry in Nigeria, fuel pump prices have been left to market forces
• As a result of this, fuel price has increased and decreased severally following actions from the major market players
• Petrol marketers have put forward some reasons for the latest N50 hike in price across the country

Ruth Okwumbu-Imafidon, a Legit.ng journalist, has over a decade of experience in business reporting across digital and mainstream media.

Following crude oil price fluctuations, fuel prices have been slashed and increased multiple times in the last month.

The latest increase saw pump prices increase by up to N50 in filling stations across the country.

Reports show that Nigerian National Petroleum Company Limited (NNPCL) retail outlets in Lagos and Abuja increased the fuel pump price from N895 to N945 per litre.

Other independent petrol marketers have followed suit. Checks reveal that AA Rano, NIPCO, and A.Y.M. Shafa are selling fuel at N955 per litre.

News Agency of Nigeria (NAN) reports that some filling stations increased prices by between N45 to N60, depending on the location and the outlet.

Petrol marketers offer reasons for the price hike

According to the marketers, the sudden increase in fuel prices is linked to the fluctuation in international crude oil prices.

The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Mr Chinedu Ukadike, said in an interview that the market deregulation also has a role to play.

Reacting to the recent hike in pump price, he explained that in a deregulated market, such as is seen in Nigeria, prices rise and fall in response to several market factors.

These include the price of crude oil as the raw material, the prevailing exchange rate, marketers’ supply costs and others.

This is in alignment with what Aliko Dangote told the technical committee of the One-Stop Shop for the sale of crude and processed goods in the Naira project.

Dangote stated that the refinery was still struggling with crude shortages, which had forced it to purchase supplies from the United States.

Purchasing the supplies at such an expensive price translates into higher fuel prices for the refinery, according to the billionaire.

Nigerians react as filling stations adjust pump price

Mrs. Adanna Chris complained bitterly about the increasing costs of fuel prices. She observed that since fuel subsidies were removed, the price has not stopped going up.

She said:

“Every increase leads to a rise in food prices, yet salaries remain the same. We are suffering in silence.”

A tricycle rider who gave his name as Samad complained that with the price of fuel going up, profits for the riders keep reducing.

He decried the situation, which has impacted the cost of living for many Nigerians and called on the government to intervene.

Filling Stations Adjust Fuel Price

Dangote Refinery recently increased the ex-depot price of petrol from N825 to N880 per litre.

This move prompted filling stations to hike pump prices, with some increasing prices up to N950 per litre.

Currently, Dangote’s rate remains the lowest compared to other suppliers like Aiteo, Bovas, and Rainoil.

Source: Legit.ng