Nigerians woke up on Tuesday morning to herald a new jump in the price of petrol, as it is now N617 per litre in Nigeria’s capital Abuja and its environs.
Also, there has been corresponding jump in the price of petroleum prices across the nation.
At the NNPC filling station in Abuja’s Central Business District (CBD) on Tuesday morning, the price of petrol has been adjusted from N539 to N617 per litre.
There has been no official reason for the jump, but it might be connected to the recent projections by oil marketers that fuel price will hit N700 per litre soon.
The pump price of Premium Motor Spirit, popularly called petrol, was raised from N537/litre to N617/litre at some filling stations operated by the Nigerian National Petroleum Company Limited in Abuja on Tuesday.
Independent oil marketers confirmed the increase in the cost of the commodity, as they stated that any shift in price by NNPCL stations was an indication of a rise in the pump price of PMS.
Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, explained that “this is because NNPCL is still the major importer of petrol into Nigeria currently, though other marketers are gradually importing the commodity. The price this (Tuesday) morning at some NNPCL stations is N617/litre.”
Some oil marketers had predicted that petrol prices could rise above N700 per litre in Nigeria’s Northern region and around N600 in Lagos once independent marketers start importing the products from July.
Their predictions were based on the current high exchange rate, crude price and landing cost.
The trend caused tension and panic buying as queues of motorists sprung up in some filling stations in the Federal Capital Territory (FCT).
But the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Association of Distributors and Transporters of Petroleum Products (ADITOP) denied plans to increase petrol price to N700 per litre.
The associations in an interview with the News Agency of Nigeria (NAN) dismissed reports of the alleged increase of pump price as speculations.
They said fuel price was being driven by market forces and given the current high exchange rate, the pump price of Premium Motor Spirit (PMS), otherwise called petrol could increase, hence the prediction.
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NDMPRA) is yet to comment to Daily Trust inquiry on the sudden pump price increase as at the time of filling this report.
During his inaugural speech on May 29, President Bola Ahmed Tinubu had announced the removal of fuel subsidy, leading to the increased price of petrol from N195 to N540 per litre.
Already, the increase in petrol prices has already led to a hike in the prices of goods. Worst affected are foodstuff and transportation.
Nigerians have been lamenting the effect of subsidy removal on their lives, but the Tinubu administration has promised relief.
Last week when he hosted class of 1999 Governors, Tinubu appealed for more patience from Nigerians.
He assured Nigerians that the framework for palliatives to remedy the effects of fuel subsidy removal was being worked out.
“I understand that our people are suffering yet there can be no childbirth without pain. The joy of childbirth is the relief that comes after the pain. Nigeria is reborn already with fuel subsidy removal. It is a rebirth of the country for the largest number over a few smugglers. Please tell the people to be a little patient.”
“The palliative is coming. I don’t want cash-transfer to fall into wrong hands. I know it pinches and it is difficult. In the end, we will rejoice in the prosperity of our country,’’ he had told the Governors, who were led by former Governor of Edo State, Lucky Igbinedion.
Tinubu had earlier written to the House of Representatives to seek an amendment to the 2023 supplementary appropriation act to accommodate N500 billion for provision of palliatives for Nigerians.
The parliament subsequently approved the request.
First published in Daily Trust