The refinery, however, raised its ex-depot petrol price to ₦1,215 per litre.

It had suspended gantry and coastal loading on July 15 after introducing a dollar-denominated pricing template for its refined petroleum products.

The latest adjustment represents a ₦140 increase per litre, or a 13.02 per cent rise, from the previous price of ₦1,075 per litre.

The refinery had attributed the introduction of dollar-based transactions to difficulties in accessing enough crude oil under the Federal Government’s naira-for-crude arrangement.

Under the temporary dollar-based pricing system, petrol was sold at $0.779 per litre, diesel at $1.087 per litre and Jet A1 aviation fuel at $0.942 per litre.

Nigerians Lament Rising Transport Costs
Naija News reports that the fresh increase has sparked anger and frustration among Nigerians, with residents complaining that transport fares usually rise immediately after petrol prices go up but rarely fall when the cost of crude oil drops.

Before the latest escalation in Middle East tensions, Brent crude had fallen to around $70 per barrel, the level at which it traded before the war in February.

However, Nigerians said petrol prices remained above ₦1,000 per litre despite the drop in international crude prices.

The Federal Government had previously summoned oil marketers and other stakeholders to ensure that petrol prices reflected the decline in international crude prices. However, residents said there was no significant reduction before the latest increase.

In Abuja, residents said rising transport costs were taking a large portion of their monthly income.

A civil servant, Grace Okeke, who spoke with Daily Trust, said every increase in petrol prices immediately affected her cost of transportation.

“My salary has not changed, but I now spend much more just getting to work and back. It is becoming impossible to survive in Abuja,” she said.

Another resident, Musa Ibrahim, said the increase would also affect the prices of food and other essential goods.

“Transportation affects everything. Farmers, traders and transporters will simply transfer the additional cost to consumers. Ordinary Nigerians are the ones paying the price,” he said.

Drivers Struggle With Rising Fuel Costs
Commercial drivers said they were also facing difficulties as the price of petrol continued to change.

A taxi operator, Emmanuel Ujah, said the frequent changes made it difficult for drivers to plan their businesses.

“You don’t know what petrol will cost tomorrow. That uncertainty affects our business and our families,” he said.

Another driver, Ganiyu Jide, said fuel now takes the biggest part of his daily earnings.

“If we don’t adjust transport fares, we cannot maintain our vehicles or even feed our families,” he said.

Although transport fares have not increased uniformly across Abuja, commuters said they were paying between 20 and 40 per cent more on some routes compared with a few weeks ago.

In Lagos, some transport operators have started reviewing fares on busy routes.

However, competition among commercial bus operators has prevented a general increase across the state.

Fuel marketers are also selling petrol at different prices, depending on their location and source of supply.

The varying prices have created uncertainty for transport operators who often need to buy fuel more than once a day.

Ibadan Fares Remain Stable
In Ibadan, the Oyo State capital, transport fares have remained relatively stable despite petrol selling between ₦1,260 and ₦1,300 per litre at some filling stations.

BOVAS sold petrol at ₦1,260 per litre, while Amazing Filling Station dispensed the product at ₦1,300.

A commercial driver, Kamoru Iyanda, said transport operators could not increase fares every time petrol prices went up because passengers were also struggling.

“It is difficult to adjust fares every time because passengers cannot afford it. Sometimes we absorb the losses,” he said.

Another driver, Amoo Saheed, said unstable fuel prices had continued to reduce the earnings of commercial transport operators.

In Ilorin, Kwara State, several major and independent filling stations increased their pump prices by between ₦35 and ₦85 per litre.

AP raised its price from ₦1,220 to ₦1,290 per litre, while BOVAS and Abanik sold at ₦1,260.

NIPCO sold at ₦1,300, NNPCL stations at ₦1,305, Optimal at ₦1,255 and External at ₦1,298.

Shafa and Atgris sold at ₦1,300, Total at ₦1,285 and Olak at ₦1,260 per litre.

Residents said the increase would have a ripple effect on transport fares and the prices of food and other goods.

They urged the government and relevant agencies to take urgent steps to stabilise petrol prices and reduce the burden on ordinary Nigerians.

One resident, Ola Yemi, described the development as disturbing and criticised the government’s policies.

“It’s very disturbing, and some of the policies of this government are really disappointing. I am beginning to think seriously that it is because of the forthcoming election. I believe they are trying to raise enough funds without considering the condition of the masses.

“Initially, we were told that the increase was because of the tension in the Middle East, but the situation appears different now,” he said.

Kaduna drivers uncertain over future prices
In Kaduna, petrol was selling for about ₦1,350 per litre after dropping below ₦1,200 only a few weeks earlier.

A commercial driver, Hassan Ya’u Kanti, said the rapid changes in petrol prices were becoming unbearable.

“A few days ago we bought fuel at about ₦1,190. Now it is ₦1,350. We don’t know what tomorrow will bring,” he said.

He said passengers often blamed drivers whenever transport fares increased, despite the rising cost of fuel.

“We are only trying to survive,” he added.

Adamawa Operators Monitor Market
In Adamawa State, NNPCL stations were selling petrol at ₦1,310 per litre, while AA Rano, Eterna and other independent marketers sold between ₦1,360 and ₦1,370.

The Commercial Manager of Adamawa Sunshine Transport Company, Aminu Muhammad, said the company would study the situation before deciding whether to increase fares.

“We don’t rush into increasing transport charges. We usually monitor developments for several weeks before taking any decision,” he said.

Kano Fares Unchanged
In Kano, transport fares have remained largely unchanged despite the increase in petrol prices.

Commercial tricycle operators said they were waiting to see if the fuel price would stabilise before reviewing their fares.

A tricycle operator, Hayatu Usman, said the latest increase was not enough to justify an immediate fare hike.

Passengers interviewed in the city also confirmed that they were still paying the same fares.

A Bayero University Kano student, Mujahid Aminu, said he still paid ₦300 for his daily trip from Zawaciki to the university’s New Campus.

Maiduguri Transport Fare Rises By ₦5,000
In Maiduguri, Borno State, independent filling stations were selling petrol between ₦1,370 and ₦1,390 per litre.

The development has also affected inter-state transportation, with the fare from Maiduguri to Kano rising from ₦20,000 to ₦25,000.

The Chairman of the Independent Petroleum Marketers Association of Nigeria in Borno State, Mohammed Kuluwu, said fluctuating prices were discouraging some marketers from buying petrol.

“Sometimes you buy at a high price only for prices to fall before the product reaches Maiduguri. Many marketers are now afraid to buy,” he said.

Small business owners who depend on petrol-powered generators also expressed concern over the latest increase.

A barber, Chinedu Nwafor, said he was spending more on petrol for transportation and electricity generation.

“If this continues, I will have no option but to increase the prices of my services,” he said.

Market Forces To Blame – Says Expert
An energy law expert at the University of Lagos, Professor Dayo Ayoade, said the rising petrol prices were a reflection of Nigeria’s deregulated petroleum market.

He explained that local petrol prices were now directly affected by movements in international crude oil prices and the exchange rate.

According to him, the Petroleum Industry Act limits government intervention in petrol pricing except when there are market anomalies.

However, he said Nigeria’s crude oil commitments under existing financing arrangements had reduced the volume of crude available for domestic supply.

He said, “When price of crude oil is high, that price will be passed on to consumers. You can see that Dangote at one point was talking about Nigerian marketers paying for its products in dollars because the vast majority of its expenditure is in dollars and it’s spending a lot of money to import crude oil into Nigeria. This means that the crude oil for Naira has, I don’t want to say failed, but it has been of limited use to Dangote refinery.”

He added, “As such, we find that the exposure of our local PMS markets to the vulnerabilities of an oil shock and increasing prices due to the US-Iran war will be ongoing. So long as the war continues, the price will go up and Nigeria will be unable to protect itself against that higher cost.”

Ayoade said the government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had limited capacity to protect consumers from the impact of rising crude oil prices.

“The Petroleum Industry Act provides for a market price, so it’s the market that now determines the price in Nigeria. Unfortunately, the federal government and NMDPRA have limited capacity to intervene and insulate consumers from crude oil.

“One way we could have done it is to expand Naira for crude, but if you go and check, Nigeria has mortgaged the overwhelming majority of its crude oil cargoes for cash and because it has done this, the amount of barrels available is so small and that it’s embarrassing,” he said.

Another industry analyst, Abdullahi Shehu, called on the Federal Government to subsidise crude oil supplied to the Dangote Refinery and other local refineries.

“He can subsidise ₦700 per litre to all the local refineries so Nigerians can buy petrol at ₦500 per litre. This is better for Nigerians than seeing the savings from subsidy removal being looted mercilessly,” he told Daily Trust.

An economist and oil and gas expert, Dr Marcel Okeke, also said the government’s reforms were not producing the desired results.

According to him, any reform that fails to improve the welfare and standard of living of citizens cannot be considered successful.

He said, “The truth is whatever you claim you have achieved and it doesn’t reflect in the well being, welfare and standard of living of the people, what are you talking about?

“Many Nigerians have been made worse off by the reforms. Look at the situation of petrol alone, as of May 2023, the price per litre was below N200 per litre. At that time it came to N800. But since the Middle East war started, everything has gone haywire, moving around N1,300 and N1,400 and now it is going to N1,500.”

Okeke alleged that the government had failed to fix the country’s refineries and reduce dependence on imported petroleum products.

He attributed the failure to what he described as vested interests benefiting from fuel importation.

“They want to continue the importation so as to continue the super profits they are making,” he said.

Source: Naija News