The year might be off to a rocky start for Nigerians as another fuel price increment seems to be lurking around the corners. This comes months after the price jumped to over ₦600 per litre with Tinubu’s subsidy removal.
Here’s all we know about this matter that has Nigerian residents worried.
What’s happening?
On Tuesday, January 2, the Nigerian National Petroleum Company (NNPC) and independent fuel marketers were at loggerheads over the removal of petrol subsidy.
Independent oil marketers claimed the naira’s depreciation has caused an increase in how much they have to pay for subsidy. The rising cost of crude oil in the international market and petrol distribution within Nigeria has also contributed to the rift between NNPC and the marketers.
In light of these factors, the National PRO of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, said a litre of petrol should actually be around ₦1,200/litre.
“So if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around ₦1200/litre, but the government is subsidising it, which to an extent is understandable,” Chinedu told Punch.
The IPMAN official implied that the federal government pays a quasi subsidy. “The Federal Government, instead of taking out the subsidy by 100%, decides to take out about 50%.”
Nigerians express concern
While the federal government has made no official announcement, reports of the increase have stirred mixed reactions among Nigerians who are still coming to terms with last year’s jump from ₦190/litre to over ₦600.
“I filled up my 25 litre keg this morning at a fueling station in my area, and it was ₦625 per litre. I don’t think the increase has taken effect, and I hope it doesn’t because that’ll be a major problem. I’m super strict with the way I switch on my gen, so I cannot imagine what the case will be if I have to buy a litre for ₦1200,” Kehinde Okeowo, a Lagos resident shared with Zikoko.
“Fuel was still around ₦620 or so when I filled up my car last night. I saw the news of a possible increase yesterday morning which was why I went to fill up my car and generator. But even this morning, I made a stop at a fuelling station, and it was still selling at the regular price,” Oladimeji, a private cab driver in Osogbo, shared.
This is a developing story.
