Fuel Price Surge in Nigeria: NNPC Raises Petrol Prices by Over 15 Percent

Nigeria's state oil corporation, NNPC Ltd, has increased the price of petrol by over 15%, the second increase in less than a month, as the country does away with the unfavorable subsidy policy. This comes after a previous move to increase prices which has further worsened an already impacted purse of the company.

In Lagos, for instance, the price of NNPC gasoline was hiked to 998 nairas ($0.6257) per liter up from 858 nairas. In Abuja, the price increased to 1,030 naira per liter, which is up from 950 naira, to mention but a few. The hikes led to increased waiting times since customers were faced with higher costs.

By September it was known to NNPC company that it was in bad debt and hence declared that it could not continue with the importation of costly fuel because the supplies at their stations lasted weeks and with little fuel left in sight.

The firm, which only imports refined petroleum products within Nigeria, is now fully positioned to recover its operational costs in two ways; one is purchasing gasoline from Dangote Oil Refinery at 898 per liter.

There are unions in many different sectors and industries who have opposed the price increase and provided valid reasons, such as that it will worsen the already-declining cost of living in the country.

As seen with the crude oil prices, gasoline prices remain a hot potato in Nigeria as many still depend on fuel electric generators to power homes because national electricity is quite poor.

‘This is the first time that gasoline is being sold in Nigeria at full market prices in the last three decades,’ commented a government official, which spares the treasury from removing the heavy maintenance speed that was otherwise expected to cost about $3.7 billion to the government this year.