Fuel queues have resurfaced across Lagos following an increase in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, by the Nigerian National Petroleum Company (NNPC) Limited and other marketers.
Many filling stations, including those along Ikorodu Road, Ikeja and Bariga, have temporarily closed due to the price hike. A correspondent who monitored the situation reports that pump price at NNPCL stations had risen to N998 per liter, while other marketers were charging even more. Northwest filling stations are now selling at N1,000, Hyden Petroleum at N1,100 and NIPCO at N1,050.
This marks the third price increase in two months, following the start of petrol purchases from the Dangote Oil Refinery on the outskirts of Lagos. NNPC Ltd. has raised petrol prices from N855 per liter to N998 in Lagos, with prices reaching N1,003 in North-Eastern states. On Sept. 3, the fuel price rose from N568 in Lagos, the lowest at that time, and N617 in other regions to a minimum of N855.
Dr Ayodele Oni, an energy lawyer, suggested that the government could foster competition by promoting the establishment of modular refineries and revamping existing national facilities. Oni, also a partner at Bloomfield Law Practice, said that increased competition among refiners could lead to better prices for consumers.
To stabilise exchange rate fluctuations, Oni recommended that the government partially defend the Naira with foreign exchange in the short term. For the long term, he called for policies that encourage exports and foreign direct investment to boost dollar inflows.
Oni also advised diversifying the economy into manufacturing and agriculture to reduce import costs. He proposed exploring alternative fuel sources such as Compressed Natural Gas (CNG) and suggested that citizens take advantage of government incentives for CNG vehicle conversion.
Oni, therefore, urged the government to introduce mass transit systems to reduce the impact of fuel price fluctuations on the populace. According to him, Nigeria is now operating under a deregulated regime, where prices are influenced by market forces, including exchange rates.
He attributed the recent price increases largely to the rising dollar exchange rate against the Naira, as the petroleum sector operates in a dollarised market. He expressed hope that the crude-for-Naira arrangement between NNPC and the Dangote Refinery would help stabilise the Naira against the dollar and alleviate pricing pressures.
Petrol hike will further deepen poverty, jobs lost – NLC
Meanwhile, the Nigeria Labour Congress (NLC) has said that the latest increase in the pump price of petrol will further deepen poverty as production capacities dip. The Congress added that the increase would lead to more jobs lost with multidimensional negative effects, and therefore, demanded its immediate reversal.
NLC position is contained in a statement signed by its President, Mr Joe Ajaero on Wednesday in Abuja, titled, “What next after increase in pump price?”. The labour leader said the previous increases had not produce any good result, rather, people only got poorer.
He said the Congress was dismayed by the latest increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.
“Even following the logic of market forces , we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly. We challenge the government to go to the drawing board and present us with a blueprint for an inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.
“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities,” he said.
It would be recalled that the Nigerian National Petroleum Company Limited(NNPCL) had raised the pump price of petrol by 14.8 per cent to N1,030 per litre from N897 across its retail outlets in the FCT. Earlier in September, the NNPCL had increased the price of the product from N615 to N897.