–Labour speaks of betrayal, demands outright reversal
–Minister of State Petroleum denies ordering NNPC to raise fuel price
The latest price adjustment, which took effect just two days after the NNPCL admitted owing suppliers approximately $6.8 billion, has led to widespread condemnation even as experts call for the external audit of the company’s accounts.
By Olawale Lamina
Barely 48 hours after it released the controversial $6 billion debt figure to the public and as President Bola Tinubu left the country for China, the Nigerian National Petroleum Corporation Limited, NNPCL, announced an increase in the fuel pump price from N650 to N897, leading to reactions from cross section of stakeholders who expressed grief and the fact that economic hardship in the country is likely to bite harder among Nigerians.
But, ahead of the lastest price increase, speculations had been rife as to the possible price adjustment based on the resumption of scarcity of the product, prompting Nigerians to crowd nearby NNPC retail outlets to refuel and those who could not do so spending hours on end at other filling stations where they had hoped to get petrol for their vehicles.
The Increased adjustment has placed the base price at N855 per litre, NNPCL Retail stations, especially in the FCT, are selling at N997, the second highest to some independent marketers selling at N1,018.
The Pinnacle Times gathered that the scenerio is different outside Abuja and Lagos, where some independent marketers were selling as high as N1,300 per litre.
A breakdown and comparative analysis of the price index, shows that with the latest upward price adjustment under President Bola Ahmed Tinubu, the price of petrol has now risen by over 355%, from N197 per litre on May 29, 2023, to N897 on September 3, 2024. The percentage increase is nearly 400% when considered the highest pump prices by independent marketers.
Ironically, the new price increase came with the start of petrol supply by Dangote Refinery to NNPC, with NNPC as sole off-taker of the product in the country. This is contrary to the widely held speculations that the Dangote supply would automatically lead to an appreciable price reduction, as experts have reasoned that this would be likely because of the absence of fuel landing cost and the dollar to Naira exchange difference.
However, confirming the commencement of petrol production at the Dangote Refinery, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, said the refinery will begin with the supply of 25 million litres of petrol to the Nigerian market, an indication that the perennial fuel queues may soon fizzle out before the news of the price review crept in.
NMDPRA authority said in a statement that: “The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September, and will subsequently increase this amount to 30 million litres daily from October 2024.”
And, on the contrary, as part of the fallouts the of the present increase in the price of the PMS, reports say the NNPCL stations in Enugu are temporarily shut down in the wake of change in price. NIPCO, North-West filing station now sell N1000 and above, as they started selling after the initial shutdown their services.
Petroleum marketers react
The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, stated that though marketers are not opposed to the government’s decision to increase the pump price of petrol, they strongly object to NNPC being the sole off-taker of the product from Dangote Refinery.
He emphasized the importance of making the product available to all marketers operating in the downstream sector saying that, “The most important thing is availability.
“We are not against the increase in fuel prices as marketers, but the fuel must be available for us to buy. The arrangement between Dangote and NNPC, which makes NNPC the sole off-taker, should be reconsidered. As major stakeholders and independent marketers, we believe Dangote should be allowed to sell directly to us. The distribution should be open so that other stakeholders can purchase the product, just like NNPC.”
He further argued that, “NNPC is also a competitor in the downstream sector, and it is wrong to single out one competitor among others, giving them exclusive access to petrol while others remain dependent on a single source. This will lead to monopoly, profiteering, and stagnation in the distribution process.”
Marketers have also expressed strong concerns over the designation of NNPC Limited as the sole off-taker of petrol from the Dangote Refinery, warning that the move could create a monopoly and lead to profiteering in the downstream sector of the petroleum industry.
Reacting to this development, the Executive Director YEAC Nigeria, Fyneface Dunamebe Fynface, from Port Harcourt said that the NNPCL is an entity under the control of the federal government and therefore should be asked to reverse the new fuel price regime.
He accused the NNPCL of taking decisions without due consultations, against the background of the comments by the minister of state for petroleum that he was not aware of the change in price of petroleum, neither did he order the change in price as speculated.
He said the president should get the silver bullet to fix the economic challenges faced by Nigerians.
He criticized the NNPCL by stating that after the government had said that subsidy had been removed and yet the NNPC still owes marketers.
Labour union reacts, demands immediate reversal
The Nigeria Labour Congress, NLC, on Tuesday rejected the new petrol pump price regime, and said that the union would not hesitate to rally Nigerians against any further action of the government that can exacerbate the hardship in the country.
The NLC in a statement at the end of its virtual National Executive Council, NEC, meeting yesterday also called for “immediate reversal of the clandestine increase in the price of petrol.”
The communiqué signed by NLC President, Joe Ajaero, stated thus: “The NEC rejects the hidden plan to increase the price of Petrol, PMS, and calls on all members of the NLC and the broader Nigerian public to remain vigilant and prepared to defend our rights and freedoms. The signs are ominous and the intentions are sinister as the State may be preparing to further increase the suffering of Nigerian workers and peoples. The Labour movement stands as the voice of the Nigerian people, and we will not relent in our efforts to uphold justice, fairness, and the rule of law.
“NEC-in-session therefore further demands the immediate release of all citizens from Prison who were protesting against hardship and hunger in Nigeria during the #EndBadGovernance protest.
“We also demand immediate reversal of the clandestine increase in the price of petrol. NEC–in-session demands a reversal of the hike in electricity tariff as we had originally demanded. We equally demand a halt to the indiscriminate arrests of citizens around the country for holding dissenting opinions.
“The Nigeria Labour Congress (NLC) remains committed to defending the rights and interests of Nigerian workers and the broader society. We will continue to stand firm against any attempts to undermine the Labour movement or infringe upon the rights of our leaders and members. We urge our Civil Society allies to continue increasing their support as we mobilise to nip the present incipient danger and undemocratic actions against our nation in the bud. A people united, can never be defeated! Workers united, can never be defeated.”
FG denies ordering NNPC to raise fuel price
Meanwhile, reacting to reports in some online platforms that he ordered NNPC to sell petrol above N1,000 per litre, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri has distanced himself from the reports he described as malicious.
In a statement by his media aide, Nnemaka Okafor, the minister said that NNPC operates as an independent company, staying that he does not interfere with NNPC in matters of pricing.
The statement added, “We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent. We challenge anyone in possession of any evidence — be it written documents, audio, or video recordings — that supports these fabrications to make it public. Such a claim is entirely devoid of truth and should be recognized as an intentional effort to mislead the public.
“It must be stressed that NNPCL operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors. The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPCL, including pricing matters.
“The public is hereby strongly advised to dismiss these malicious rumors. The Honourable Minister cannot, and does not, direct NNPCL or any other entity within the sector to manipulate prices.”
Other reactions
A retired civil servant based in Abuja, Mr. Andy Kor also lent his voice to the new (PMS) petrol price regime by saying that: “There is price increase but nobody can see fuel to buy, is this an achievement of the regime in power?
“After President Tinubu boasted about removing fuel subsidy in the country, we discovered it was a ruse and fuel is still out of reach, in fact, I left my car in the queue last night at NNPC Central Area, only to go back this morning if I could get fuel.
“Honestly it is not easy with majority of us now, even businesses are not thriving for us have money to buy things in the market, filling station are not selling despite the new price, why? It is terrible.
Another concerned Nigerian, Eze Tunji simply stated concerning the upward adjustment of the price of PMS that, “This increase is devilish and very insensitive.
“It shows that Tinubu and his team are totally disconnected from the realities of the hard times faced by Nigerians.
If care is not taken, something will give way soon because it is becoming so unbearable.
Meanwhile, some commuters told journalists that the fares they paid while leaving their houses for work in the morning had doubled in the afternoon, leaving them helpless.
They expressed frustration at the development and made a demand for immediate government intervention in the interest of poor Nigerians.
An office clerk, Serah Daniel said that , “I paid N1,000 from my house in Gudu to Area 10, where I work, only to leave work now and realise the fare has increased twice as much.
“I saw how difficult the situation was as many commuters did not have enough to board vehicles to their destination. I manage to trek a reasonable distance before I joined the last vehicle to my office.
Our checks also revealed that commuters now parted with N400 as against N250 from Apo to Gudu in the FCT, Abuja
Also, based on the fuel price hike now directly affecting cost of transportation, commuters spend N600 from Nyanya to the City Centre in the FCT as against N200
Jonas Ikenga said: “Since the day President Tinubu removed fuel subsidy, the Nigerian economy had been badly affected. People easily lose their lives due to frustration. Things would be worse off until urgent steps are taken.
A trader at the Wuse Market who preferred to remain anonymous shared her frustration that, “What used to cost me N300 now costs N600, which is just one way. With the way things are going, I might have to consider closing my shop much later to see if I could make more money.
A commercial driver, Bright Ogbona said, “We have no choice but to increase our fares too because we need to cover our expenses and not run at a loss. But I pity the passengers who will be enduring the situation until there is solution.
“At NIPCO fuel station, where I fill my tank, they have increased the price from N640 to N945, almost N1,000, even when you are unsure if they have tamper with the pump or not.”
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