The recent hike in fuel prices in Nigeria has sparked widespread concerns, with the Dangote Refinery and the Petroleum Products Marketers Association of Nigeria (PETROAN) attributing the increase to rising global crude oil prices. Nigerians are now facing a surge in petrol prices, which has led to complaints about the subsequent impact on food and transportation costs, among other challenges.
On Friday, Nigerians woke up to a fresh increase in petrol prices. Dangote Refinery, which produces a significant portion of the nation’s petrol, raised its ex-depot price from N899.50 per litre to N950, reflecting a 5% increase. Following this, retail petrol prices rose to between N970 and N1,150 per litre. Filling stations in partnership with Dangote Refinery, such as MRS, now sell petrol at N970 per litre, while outlets of the Nigerian National Petroleum Company (NNPC) set their price at N999 per litre.
The Dangote Refinery explained that the price hike is directly linked to the significant rise in global crude oil prices, particularly Brent crude, which has surged from $70 to $82 per barrel in recent days. The refinery clarified that it absorbed half of the cost increase from international oil markets, ensuring that the retail price remains lower than it would have been if the entire cost increase were passed on. Dangote Refinery emphasized its commitment to maintaining affordable fuel for Nigerians, despite the price hike.
PETROAN, through its spokesperson, Joseph Obele, echoed similar sentiments, attributing the price increase to fluctuations in global oil prices. The association stated that Nigerian marketers are forced to reflect the rising international prices in their domestic selling rates.
The latest price hike has left Nigerians lamenting the additional financial burden. The Deputy President of the Nigeria Labour Congress Political Commission, Prof. Theophilus Ndubuaku, expressed concerns about the impact on food prices, transportation fares, and inflation, stating that the hike would exacerbate the already difficult economic conditions. Residents, such as Suleiman Abubakar from Abuja, predicted that the coming days would be tougher for Nigerians as the price of essential goods and services continues to rise.
In response, many Nigerians have criticized both Dangote Refinery and fuel marketers for shifting the blame to global oil prices, leaving citizens to bear the brunt of the price hikes. This has ignited debates about the potential for domestic measures to stabilize fuel prices and ease the pressure on the Nigerian populace.