When the federal government decided to sell crude oil to Dangote Refinery and other local refineries in Naira, many Nigerians expected that this policy will potentially result in lower fuel pump price for consumers. But it was not to be.
Millions of Nigerians were stunned Wednesday afternoon following yet another increase in the petrol pump price by the national oil company, NNPCL, which incidentally announced 24 hour earlier that it had pulled out of its role as a middleman in the Dangote Refinery purchase deal, implying that it will no longer cover the price gap between the facility’s price and the selling price to retailers, previously absorbing a ‘subsidy’ of N133 per litre.
In Lagos, fuel which previously sold for N885 per litre is now being sold at N998 in NNPCL outleta amid long queues, while in the capital city, Abuja, a litre of petrol now cost N1,030 up from N998.
On the other hand, marketers would independently negotiate petrol prices directly with the Dangote Refinery under a “willing buyer, willing seller” arrangement, aligning with practices for other deregulated products such as diesel and kerosene.
Petrol could then sell for as high as between N1200 and N1300 (even N1500) in far-flung places like in Northern parts of the country and the Southeast. As things stand now, Nigerians will have to suffer more and continue to endure the incessant fuel price hikes which astronomically jumped from N198 to N1,030 per litre In 18 monthsunder President Bola Tinubu, who seem very keen on ensuring that citizens buy petrol at excruciating rate.
A few months ago, the federal government lobbied governors to support moves to increase petrol pump price to N1000 before the Dangote Refinery commencement of operations.. The report indicated a seemingly deliberate effort to officially jerk fuel prices irrespective of landing cost or cost of local refining.
Sadly, Nigerians will keep buying petrol at ridiculous prices because NNPCL sell crude to Dangote in Naira, but at dollar rate. The culprit is still the floating of the Naira. Buying crude in Naira at dollar rate will not alleviate anything. This situation is becoming unacceptable. Nigerians deserve respect from President Tinubu and his administration. Our patience has been stretched to its limit. The worse thing is that even at this high petrol price, pumps at filing stations are still fraudulently manipulated and nobody cares to checks on them.
The increase in petrol prices significantly contributes to the overall cost of living. Basic goods and services become more expensive, straining household budgets and reducing disposable income. For the average Nigerian, spending patterns shift, often resulting in a decline in the quality of life. Families find it increasingly difficult to afford basic necessities such as food, healthcare, and education, as their consumption power diminishes in the face of rising costs.
The lack of alternative transportation options further exacerbates this situation. Many Nigerians rely on public transport, which is significantly influenced by fuel costs. As tri-cycle, bike, taxi and bus fares increase to accommodate higher fuel prices, commuting becomes more costly, placing an additional financial burden on working-class citizens. This situation fuels a vicious cycle of poverty and reduces economic mobility, often confining individuals and families to a state of economic stagnation.
The combination of rising fuel prices, inflation, and increased cost of living culminates in widespread socio-economic hardship. The poor and vulnerable populations are disproportionately affected, as they navigate the dual challenges of limited income and escalating prices. The inability to meet basic needs may lead to increased frustration, particularly in urban areas where the gap between rich and poor becomes glaringly evident. This situation can lead to social instability as individuals and families are pushed further into poverty, igniting tensions within communities and possibly leading to protests and civil unrest.
Socially, persistent hardship stemming from rising petrol prices may lead to a loss of faith in governmental institutions and policies. If citizens perceive that the government is unable or unwilling to stabilize fuel prices or address their concerns, it may erode trust and lead to increased political unrest.
