Somto BisinaHours after the NNPCL adjusted upwards the pump price of premium motor spirit (PMS), marketers increased prices in parts of Lagos and across the country. Fuel pump prices increased to over N600 per litre on Tuesday, July 18 across Nigeria.
The increases were not uniform as some states were reportedly selling for N620, while others sold for N640 per litre. Stations under the Nigerian National Petroleum Company Limited (NNPCL) sold for N617 per litre.
This significant price hike is shocking to consumers, considering that just 72 hours ago, fuel was sold at N537/N540 per litre.
The increase in fuel pump prices is primarily attributed to the surge in Brent crude prices, which crossed the $80 per barrel mark last week for the first time since May 2023.
Nigeria’s fuel pump prices are directly impacted by international crude prices because the country relies heavily on fuel imports. Nigeria lacks large-scale crude refining capacity, which necessitates the importation of refined petroleum products.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that the increase in fuel pump prices was inevitable, especially when new fuel imports are introduced in the third week of July, reflecting higher crude prices in the international market.
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According to Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), the marketers are incurring additional expenses due to international price fluctuations.
As a result, the local fuel pump price must be cost-reflective and determined by market forces. It is crucial to note that fuel pump prices have never been uniform across the country due to transportation costs between depots and retail stations, as well as fees payable by distributors to state and local governments.
Examining the past year, in July 2022, Nigerians purchased fuel within the average price range of N165 to N185 per litre.
By October 2022, the prices ranged between N148 to N178 per litre. In December 2022, people paid between N148 and N206 per litre for fuel, and by January 2023, the prices were back in the range of N165 to N185 per litre.
After President Bola Ahmed Tinubu declared an end to fuel subsidies, fuel prices experienced a significant jump. The pump price surged from N195 to N488 per litre in Lagos, N540 per litre in Abuja, and up to N570 in some Northern states. As of Tuesday, July 18, prices further escalated to over N600 per litre nationwide.
These continuous fuel price increases place an additional burden on Nigerians who are already grappling with rising food prices, transportation costs, and a minimum wage of N30,000, which is not sufficient to cover the mounting expenses.
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