Abuja, July 19, 2023: Filling Stations across Nigeria have commenced selling of fuel otherwise known as “Premium Motor Spirit (PMS)” to motorists and individuals at prices ranging from N600 to N650.
The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday announced new pump price of petrol from N537 to N617 per litre.
The NNPC outlets on Tuesday were open to dispense fuel to motorists, and that there was no queue.
In Abuja, queues were noticed in some filling stations other than NNPC outlets as motorists to buy petrol where it was still sold for N540 per litre.
Mr Sunday Okorie, in Abakaliki said that he bought fuel at N600 per litre.
He decried the sudden hike by NNPCL without considering the already made suffering on the masses.
He called on the Federal Government to reconsider the whole policies surrounding the fuel subsidy removal in order to reduce the suffering on the citizens.
“The suffering is too much on us, the citizens. We have not even survived the last increment of N515 and now is N600 and some have already started selling N650 and above.
Also Mrs Margret Okonkwor, also expressed worry over the sudden increment and urged the Federal Government to listen to the suffering of the general public.
Motorists and commuters in Sango-Ota, Ogun, expressed shocked over the new pump prices of petrol.
In Sango-Ota and its environs the few filling stations selling the product had adjusted their pump price.
The few filling stations like NIPCO, NNPC and Mobil Filling Station, that were selling the product at the old price witnessed long queues of vehicles.
Some of the filling stations were hoarding the product while long queue at various filling stations resulted to traffic gridlocks on some of the major roads in Sango-Ota.
Mr Bola Martins, a motorist, described the situation as uncalled for, as Nigerians were still struggling with the petrol price that was recently increased.
“Nigerians are really going through hard times and there is urgent need for the Federal Government to ensure measures that will help to ameliorate the sufferings of the people.” Martins said.
Mr Jide Onabanjo, a commercial motorist, said that the new price of petrol would be added to transport fares for the people.
Onabanjo said that this development would further increase the prices of goods and services in the country.
“We can’t continue like this because we have been pushed to the wall.” he said.
Fuel queues also resurfaced within Lagos metropolis in the filling stations that had not adjusted their pump price.
The fuel is sold between N580 and N600 at most filling stations, owned by both major and independent marketers.
The hike in price of petrol is sequel to the increase in ex-depot price of petrol from N446.57 per litre to N580 per litre.
However, the situation has triggered panic buying as motorists raced to filling stations to buy petrol.
Also, some of the NNPCL retail outlets monitored were selling at N600 per litre.
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.
Mr Mike Osatuyi, Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), said petrol, kerosene and diesel had been deregulated.
According to him, with the development, 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 are determined by market forces.
“It is the market forces that determine the prices and it is an act of deregulation.
“It’s about the market because everyone is into it to make profit” he added.
Similarly, a marketer who preferred anonymity, said 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 transparent 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 dropped 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 that 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
“Overtime, 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.
