Latest Petrol Price Hike News, Update On Fuel Scarcity For November 12th, 2024

As Nigerians continue to groan over the recent increase in fuel prices by the Nigerian National Petroleum Company (NNPC) Limited, Naijaonpoint brings you the latest update on petrol scarcity, fuel price increase and Govt/citizens’ reactions.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Refinery for direct fuel product supply.
Naijaonpoint reports that this partnership was confirmed by IPMAN’s National President, Abubakar Garima, during a press briefing in Abuja on Monday after a session with the Association’s National Working Committee.

According to Garima, this collaboration is aimed at ensuring a consistent and affordable supply of Premium Motor Spirit (PMS) across Nigeria.

“After meeting with Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets,” Garima said.

He called on IPMAN members to support the new partnership, emphasizing that it promotes backward integration and could positively influence Nigeria’s foreign exchange reserves.

“IPMAN members should rely on Dangote Refinery and Nigerian refineries for white products, creating more job opportunities and supporting President Bola Tinubu’s renewed hope agenda,” Garima added.

This deal comes after several months of negotiations and is anticipated to boost efficiency, reduce prices, and stimulate economic growth.

The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, on Nigeria’s shores has seen a significant 20.34 per cent reduction, falling to ₦971.57 per litre over the past three months.

This decline, which includes importation and distribution expenses, reflects relief from global market fluctuations and supply chain dynamics.

Despite this drop, the retail price of petrol in Nigeria has surged by ₦443 or 71.79 per cent, increasing from ₦617 per litre on August 1, 2024, to ₦1,060 per litre as of November 8, 2024. Independent marketers are selling at even higher prices, up to ₦1,180 per litre.

Data from the Major Energies Marketers Association’s daily energy bulletin indicates that in August, oil marketers imported petrol at ₦1,219 per litre when Brent crude was priced at $80.72 per barrel, with an exchange rate of ₦1,611 per dollar. During this period, petrol retailed at ₦617 per litre.

However, by November, the landing cost had dropped to N971.57 per litre, with Brent crude priced at $75.57 per barrel and the exchange rate at ₦1,665.84 per dollar.

The Human Rights Writers Association of Nigeria (HURIWA) has strongly condemned the recurring fuel price hikes, claiming they are part of President Bola Tinubu’s agenda to financially benefit his associates.

In a statement signed by HURIWA’s National Coordinator, Emmanuel Onwubiko, the organization argued that the policy to repeatedly increase fuel prices was never aimed at helping average Nigerians.

“The truth and nothing but the truth is that the policy of incessantly hiking the pump price of fuel and petroleum products were never meant to benefit the commoners of Nigeria.

“The primary goal is to financially reward friends of those holding sway in the current administration, their cronies or business affiliates,” Onwubiko stated.

HURIWA pointed out that these price increases have led to surging costs for essential goods, making it difficult for millions of impoverished Nigerians to afford basic necessities.

“The hikes in the costs of fuel have only brought instability in the prices of essential food items and the inability of millions of absolutely poor households in Nigeria to buy their essential food items, has resulted in malnutrition of hundreds of thousands of children, mass hunger, increasing number of out-of-school children, and starvation and untimely deaths.

“Whereas most poor Nigerians perish in unmitigated poverty and unpredictable high costs of living, only very few people running businesses in the oil and gas sector are making a kill by way of profits as data and statistics made available at the weekend have shown this irrefutable fact,” the group added, citing recent statistics.