Oil and gas industry stakeholders stated on Tuesday that the recent increase in petrol pump prices was inevitable, emphasizing that the hike would help alleviate the subsidy burden on both the Federal Government and the Nigerian National Petroleum Company Ltd. (NNPCL).
Henry Adigun, an oil and gas consultant, explained that while the price increase is a step toward addressing the subsidy issue, it does not fully resolve the need for total deregulation of the downstream petroleum sector. He noted that until market prices align with international product prices, NNPCL will continue to be the sole importer. Adigun welcomed the commencement of petrol production by Dangote Refinery but stressed that its supply would depend on favorable market conditions.
Ukadike Chinedu, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), mentioned that NNPCL had not officially informed marketers about the price increase, with depot owners and marketers awaiting further directives. He expressed optimism that the entry of Dangote Refinery into the market would enhance product availability and help address scarcity issues.
Ayodele Oni, a partner at Bloomfield Law Practice, described the price increase as unfortunate but reflective of market realities. He questioned whether the new price adequately covers all costs and provides a sufficient margin, noting that the Petroleum Industry Act (PIA) encourages market-driven pricing over monopoly.
An anonymous marketer revealed that NNPCL had raised the petrol price to N855 per litre, with private operators expected to purchase fuel at an ex-depot price of N950 per litre. The marketer added that the retail price at private filling stations could exceed N1,000 per litre when all costs are factored in. NAN observed that filling stations across Lagos have adjusted their prices accordingly, with NNPCL stations selling at N855 per litre and major marketers pricing fuel between N868 and N900 per litre.
Credit: NAN (Text Excluding Headline)