Nigerians have expressed shock as fuel queues have resurfaced within Lagos metropolis, Abuja FCT, Ibadan and other parts of the country due to a hike in the pump price of petrol by the Nigeria National Petroleum Corporation Ltd.
BRANDPOWER observed that most filling stations had adjusted their pump price. tobetween N580 and N600 at most filling stations, owned by both major and independent marketers.
The hike in price of petrol is the sequel to the increase in ex-depot price of petrol from N446.57 per liter to N580 per liter.
However, the situation has triggered panic buying as motorists raced to filling stations to buy petrol.
In Lagos, there were queues at Mobil Filling Station on Ikorodu Road, TotalEnergies at Mobolaji, Amuf at Bariga and Conoil in Ikorodu while there were vehicles on a long stretch within and outside most of the facilities.
A visit to Northwest Station in Gbagada showed N570 per litre, Mobil at Anthony, N580, Amuf in Palmgrove, N558 and Conoil in Ikeja, N590.
Also some of the NNPCL retail outlets monitored were selling at N600 per litre.
Consequently, queues extended to the roads from the facilities, compounding traffic woe.
However, Mr Adetunji Oyebanji, the Chief Executive Officer, 11 Plc, said: “I believe so, fundamentals are changing, exchange rate, so price will change.
“If they do not change, people will be reluctant to import.
In Abuja, at Maitama, Wuse, Gwarimpa, Jabi, Wuye and Kubwa areas of Abuja reports that there are long queues in filling stations still selling at the old price.
Most stations have adjusted their pump prices to N617 to N620 but AA Rano, Nipco in Jabi are still selling the old price and some other few places.
Also, the Nigerian National Petroleum Company Limited (NNPCL) station is selling at the new price.
A fuel attendant who pleaded anonymity said that they would adjust their pump price before the end of today.
A customer who confirmed this development, Mr Emma Uzor, said that it is a terrible situation.
“ We are still battling with new price and with two months they increase it again, this is not fair to the masses.
“ No information or reasons for the increment, how do they want the poor masses to survive? The salaries have not been increased and food prices have risen.
“ The government should go back to their drawing board and come up with favourable conclusion from the citizens,” Uzor said.
BRANDPOWER reports that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NDMPRA), oil marketers are yet to make any announcements.
BRANDPOWER recalls that in May a day after President Tinubu was sworn into Power the Nation’s Apex Petrol station increased the fuel price from N195 per litre to 537 per litre.
The development was occasioned by Tinubu’s inaugural speech, where he said fuel subsidies would be removed.
In Ibadan, motorists and commuters in Ibadan expressed shock over the new pump prices of Premium Motor Spirit (PMS), otherwise known as petrol, announced on Tuesday by Nigerian National Petroleum Company (NNPCL).
It was observed that as the news of the fuel price increase filtered out, some filling stations hurriedly closed shop, with their managers saying that they were awaiting further directives from the authorities.
BRANDPOWER also reports that the few filling stations that were selling the product witnessed long queues of vehicles, while they were selling for between N560 and N650 per litre.
A motorist, Mr Anu Alani, said he woke up on Tuesday to see that many filling stations were not opened for business and those who were selling increased their price to N650 per litre.
“I was thinking that when I go farther, I would see where I could buy fuel at the normal price but I didn’t. I don’t know what to do again as the economic situation is already bad,” Alani said.
Another motorist, Mrs Ayoola Olaoba, said that she would have to find a means of leaving the country, as things did not look like it would get better soon.
“I bought fuel some days ago at N520 only for me to see some of my colleagues saying it has increased to N620. I said just like that!
“I do not think I can continue with the uncertainty trailing the present economic situation,” she said.
A commercial motorist, Mr Gbenga Oriowo, said that the new price would definitely have an attendant effect on transport fares.
“I am still in the queue now and there is little or no probability that I will get fuel, and even if I get, I cannot but increase the transport fare. We will all have to bear the situation,” he said.
Oriowo said that government needed to explain to Nigerians what was going on and the rationale behind the new price regime.
Another motorist, Mrs Funmi Alli, said some major marketers had closed their filling stations, saying that this had contributed to long queues where the fuel was available.
She expressed the fear that the fuel price increase would have spiral effect on food prices and every other thing, which might increase the hardship already being faced by Nigerians.
In Awka the price of petrol has risen from between ₦630 to ₦640 per litre in Awka, the capital of Anambra.
The increase was against the price range of between ₦530 to ₦540 which prevailed until Tuesday.
BRANDPOWER reports that the NNPC in the town was not selling as it was closed to customers. However, RainOil outlets in Awka were still selling at N600 per litre as at press time.
Some motorists who spoke to NAN expressed shock over the sudden increase in PMS price. Mr Anthony Umeh said he was just recovering from the effect of subsidy removal before the recent increase.
Umeh said it was unfair that one could only get eight litres of PMS with N5,000 in a country that is one of the largest producers of crude oil in Africa.
“The increase is unfortunate, normally ₦5,000 will give me 25 litres but I just got eight litres. “This is unacceptable in a crude oil-rich Nigeria,” he said.
In a reaction, Mr Chinedu Anyaso, Chairman of IPMAN, Enugu Depot Community in charge of Anambra, Ebonyi and Enugu, acknowledged that there was an increase in price of products.
BRANDPOWER recalls that there had been speculations that fuel price might go up to N700, though it was debunked by stakeholders in the petroleum sector.
What operators are saying…
Mr Mike Osatuyi, Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), said petrol, kerosene and diesel had been deregulated, even NNPCL retails stand as private entity and not government owned company.
He said, “NNPCL is no more in charge of control of price. Now, it is what marketers buys they will sell with their margin. So, it’s not deliberate act of NNPCL to increase price anyhow or reduce price, but it is based on market forces.
“All marketers will do same. As we speak, crude has gone up and dollar is also up. Forex is at N803 per dollar on Import and Export windows that is CBN rate.
“So, the figure on new template will make the pricing to go up. If the crude reduces and dollar rate also reduces, it will also affect the price downward.
“Increase and reduction in price is determined by market forces.
“It is the market forces that determine the prices and it is an act of deregulation.
“It’s about market because everyone is into market to make profit” he added.
Similarly, a marketer who preferred anonymity, told NAN that the increase in pump price of petrol by NNPCL was a true reflection of market reality.
The marketer said: “When NNPCL did the pump price six weeks ago, what was the exchange rate? It was within N631 to N660, which was not a transperent rates.
“Today, the exchange rate is within N820 to N825 to pay for product, the price on cost recovery means that price will go up.
“Just like the diesel price that went up between N800 and N900, but later ropped to N600. Same thing is happening, now, to petrol pricing,” he said.
According to the marketer, pricing will go up and down, depending on cost of the input. Ever since they used the nominal rate, for N650, even at that time the black market exchange rate was N750 but they used N650.
“Now that the gap has been closed, everybody will now use N820 as at today.
“If you use the rates that NNPCL, one still has to pay for the product.
“It has to access the foreign exchange to pay for the product because there is no longer any subsidy.
“Originally, our calculation was to use N631 because at that point in time, the window was claiming N650 and the black market was claiming N750
“Over time, the CBN window and black market will be unified. Presently, the unified market price is now N820.
“That is the number to use to calculate.
The marketer said that most marketers that imported were asked to pay within 20 to 30 days of import, noting that costs were determined by the exchange rate they got during purchase.
According to the marketer, NNPCL no longer have free crude oil to swap, all crude oil is being sold.
He noted that money was paid into Federation Account to the benefit of all Nigerians.
“NNPCL has to use the current foreign exchange rates that everybody is using
“There must be a level playing ground to allow completion,” he advised.
