From N825 to N925: Fuel Price Instability Worsens as Nigerians Struggle With Soaring Petrol Costs

• Nigerians are struggling with volatile petrol prices, which are causing significant challenges for motorists and business owners
• The recent price hikes have sparked widespread frustration, with fuel costs now consuming a large portion of consumer incomes
• PETROAN has called for more stable pricing, advocating for a six-month observation period before implementing new price changes

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

Nigerians are grappling with mounting challenges due to erratic petrol pricing, which continues to disrupt the downstream oil sector.

Motorists and business owners alike are frustrated by the unpredictable nature of pump prices, which has made budgeting and daily operations increasingly difficult.

Nigerians grapple with unpredictable petrol price

Many entrepreneurs say that the recent fuel price hikes have exacerbated their financial strain, making it difficult to plan ahead or manage business expenses.

The sharp and inconsistent rise in pump prices, they argue, is wreaking havoc on operations and profit margins.

A major point of concern for marketers is the role of Dangote Refinery, which they say is complicating the market landscape with frequent and unexpected price adjustments.

Tensions peaked last week when the refinery and the Nigerian National Petroleum Company Limited (NNPC) raised their petrol prices from N825 to N925 per litre, causing alarm among retailers and consumers already burdened by rising living costs.

According to data obtained from petroleumprice.ng, Dangote Refinery’s latest price is slightly lower than those of other suppliers.

In separate interviews, consumers expressed concern over the impact of soaring fuel prices on their incomes.

A commercial driver, Jide Akanbi, lamented that the cost of petrol now consumes nearly half of his earnings, leaving little room for savings or investment.

He said:

“Before now, a tank of fuel was enough for three trips. Now, it barely covers tw."

Similarly, tricycle rider Chinedu Okoro called on the government to stabilise fuel pricing, stressing that many Nigerians who rely on petrol for their livelihoods are barely surviving.

Maxwell Uche, an importer and distributor, also noted the difficulties in planning, saying:

“You can’t prepare for next week’s expenses because the price keeps changing. It’s exhausting.”

PETROAN criticises frequent price changes

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), echoed these concerns.

He criticised the inconsistent pricing strategies adopted by Dangote Refinery and the Nigerian National Petroleum Company (NNPC), stating that the volatility hampers business operations for their members.

While PETROAN welcomes any price reductions, it insists that stability and industry-wide consultation are essential to protect the downstream market.

He said:

“While deregulation is seen as a positive step, PETROAN emphasises the need for both NNPC and Dangote to adopt a collaborative approach to ensure fair pricing and protect marketers."

The association proposed a six-month observation window before implementing new pricing decisions, allowing marketers to better align their strategies and maintain profitability.

Additionally, PETROAN urged the NNPC and Dangote to adopt a cooperative model to ensure fair pricing, stressing that a competitive importation market should be maintained to foster equilibrium and reliability across the supply chain.

Dangote names those frustrating oil sector reforms

Meanwhile, the president of the Dangote Group, Aliko Dangote, has blamed oil marketers and traders for trying to frustrate Tinubu’s reforms.

The billionaire businessman said cabals in the oil industry include major oil marketers who are determined to frustrate Tinubu’s policies.

Dangote denied reports that he was accusing the NNPC management when he mentioned that oil cartels were trying to frustrate his refinery.

Source: Legit.ng