The expectation that queues at filling stations would dissipate after the sudden hike in petrol prices on Tuesday was dashed yesterday.

Across major cities such as Lagos, Abuja, Kaduna, Ibadan, Warri, Jos and Port Harcourt, motorists spent hours at stations waiting to buy petrol – which was unavailable in most places.

Commuters were stranded, many of them unable to leave the bus stops for their respective designations.

Surveys across major cities by The Nation showed that petrol was being sold for between N855 per litre and about N1,200.

After admitting disruption in supply due to $6.8 billion in debts to suppliers, the Nigerian National Petroleum Company Limited (NNPCL) filling stations adjusted their meters to reflect new prices.

The increase by the sole supplier of petrol triggered an immediate increase across other retail stations, with major oil marketers adding slight premium and independent oil marketers adding more than N100 to the NNPCL’s price.

From Lagos to Abuja, Warri, Kano, Jos, Nasarawa, Abeokuta and others, queues were long.

Our reporter observed that several filling stations were shut within the Warri and Effurun metropolis of Delta State yesterday morning.

The few that were open for business sold petrol above N1,000.

The development also affected interstate transporters.

At the popular Airport Junction, Effurun, the usual bustle at the transport lines was less.

It was learnt that most transport services could hardly get petrol to fuel their vehicles.

The commuters decried the incessant increase in petrol price and scarcity of the product.

“I bought petrol from the black market at N1,400. Some people sell at N1,500. This increase has affected fare prices and it is affecting our work, especially with the fact that we have to pay community levy every day.”

Motorists and commuters in Jos decried the hike in pump price.

The News Agency of Nigeria (NAN), correspondent who went around Jos observed that major and other marketers were dispensing the product between N970 and N1100.

While many fuel stations were without the product, NAN observed long queues at NNPCL Mega Station, Dogon Karfe, and NNPCL Station Mararaba Jamaa, as well as the Mobil Filling Station in Hwolshe, Jos.

The Organised Private Sector (OPS) reacted with caution, acknowledging the burden and unsustainability of the petrol subsidy, while noting the adverse effects of the hike in petrol price on consumers and the productive sector of the economy.

The Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Lagos Chamber of Commerce and Industry (LCCI) bemoaned the difficult situation of the gap between average cost and average retail price.

Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said with Nigeria susceptible to global crude oil shocks and Nigeria’s domestic refineries not working, it was understandable that the NNPCL would at some point adjust the pump price.

He noted, for instance, that globally, there is an increase in crude oil prices, and Nigeria’s refineries are not producing, leaving the country to import fuel.

“The increase in the cost of crude oil will have a direct impact on the cost of importing fuel into Nigeria and expectedly, the NNPCL would at some point, adjust domestic prices,” Ajayi-Kadir said.

According to him, manufacturing performance would be negatively impacted, while businesses may need to adjust their pricing strategies, which could lead to reduced profit margins if consumer demand weakens.

He added that small and medium enterprises (SMEs), which often operate on thin margins, could be particularly hard-hit.

Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, said the latest increase has reduced the shortfall between the landing cost and the former price level of N568 charged by NNPCL, noting that the burden of the shortfall accumulated to a debt of N10 trillion and thus, clearly unsustainable.

She, however, pointed out that completely removing subsidy would subject Nigerians to a significant fuel price hike amid significant economic challenges.

According to her, a steep price hike would likely trigger widespread price increases, potentially reversing the recent easing in inflation seen in July and leading to another surge in inflation rates.

She canvassed the need for balancing the need for fiscal responsibility with the economic impact on citizens.

“The impact on businesses will be severe, with fuel prices affecting supply and logistics, power generation, transportation, and factory operations.

“The cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power this will be followed by job losses,” Almona said.

Hike faulted

NACCIMA National President, Dele Oye, said the Chamber understood the complex factors that can influence fuel prices, such as global oil market dynamics and exchange rate fluctuations.

Oye, in a statement, however, said the Chamber is troubled by the lack of prior notice and clear explanations provided by the government and the NNPCL regarding this development viz, the increase in the pump price of petrol to over N800 per litre at NNPCL filling stations across the country.

The NACCIMA chief described the timing of the price hike as “particularly concerning,” saying that it has the potential to further exacerbate the impact on businesses and consumers, especially the vulnerable segments of the population and those on fixed incomes, who are still adjusting to the recent increase in the national minimum wage.

NACCIMA called on the Federal Government and the NNPCL to engage in constructive dialogue with relevant stakeholders, including the OPS and labour unions to address the concerns raised about this price increase and its potential effects on the economy.

The Trade Union Congress of Nigeria (TUC) warned that the latest increase would worsen poverty among workers

The union said the sudden hike allegedly “implemented without consultation with critical stakeholders,” represented a blatant disregard for the welfare of the Nigerian people, particularly the working class who bear the brunt of such decisions.

In a statement by its President, Comrade Festus Osifo, the TUC urged the government to “immediately rescind these decisions, promote policies that will strengthen the naira and take decisive steps to alleviate the suffering of Nigerians.”

According to the statement, the Federal Government must “act swiftly to restore confidence and prevent further deterioration in the living conditions of its citizens.”

The statement said: “The disturbing news of the increase in PMS pump price all over the country has sent a wave of apprehension and depression across the length and breadth of the nation. This is in the wake of an already existing unprecedented hardship upon citizens.

“The Congress has long posited several strategies that should be activated towards improving the strength of the Naira and give value to every kobo spent by Nigerians as this is one of the root causes of all the economic woes we face as a country today. Yet much hasn’t been done about these recommendations.

“Congress stands with the working people of Nigeria who are struggling under the weight of rising inflation, a high cost of living, and a deficient work environment that fails to provide the basic standards of decency and dignity.

“The sudden hike in fuel and electricity costs will only exacerbate these challenges, leading to further hardship and potential social unrest.”

NBA urges Fed Govt to halt fuel price hike

The Nigerian Bar Association (NBA) urged the Federal Government to halt the implementation of the new pump price of petrol.

Its president Mazi Afam Osigwe (SAN) said while tough policies are needed, care must be taken not to exacerbate the hardship faced by citizens.

Osigwe, in a statement he signed, described the latest increase as “abrupt” adding that it came when Nigerians were grappling with inflation.

It reads: “The NBA expresses its profound concern and strong condemnation over the recent increase in the pump price of fuel by the NNPCL, which has risen sharply from 617 Naira to about N900.

“This significant and abrupt hike has imposed an unbearable burden on the already overstretched finances of ordinary Nigerians, further aggravating the economic challenges faced by millions across the country.

“The cascading effects of such a steep increase in fuel prices on the cost of living, transportation, and essential goods and services are deeply troubling.

“Many Nigerians are already grappling with inflation, unemployment, and other forms of hardship, and this additional financial strain is simply unsustainable.

“If allowed to persist, this price hike will only deepen the poverty and hardship experienced by the citizens.

“While the NBA acknowledges the necessity of economic reforms and recognises the government’s responsibility to make difficult decisions, these decisions must be made with the utmost consideration for their impact on the welfare of the citizens.

“The NBA views this sudden price hike as not only harsh but also unjustified at this time.

“In light of this, the NBA calls on the Federal Government to immediately halt the implementation of this policy and engage in meaningful dialogue with all relevant stakeholders, including civil society organisations, labour unions, and economic experts, to explore more sustainable and less punitive alternatives.

“We urge the government to prioritise the welfare of its citizens, particularly the most vulnerable, and to pursue policies that alleviate rather than exacerbate the hardships faced by the Nigerian people.”

‘NNPCL should not be sole off-taker’

Also yesterday, oil marketers and legal experts faulted the designation of NNPCL as the sole off-taker for petrol produced by Dangote Refinery.

They argued that NNPCL still enjoys being the sole importer of petrol while other stakeholders have struggled to secure the necessary foreign exchange to compete.

Therefore, a further extension of such privilege to the firm with regards to locally refined petrol, they fear, may be counterproductive to the system.

Independent Petroleum Marketers Association of Nigeria (IPMAN) Public Relations Officer, Chief Chinedu Ukadike, said the product should be made available to all marketers operating in the downstream sector.

“The arrangement between Dangote and NNPCL, which makes NNPC the sole off-taker, should be reconsidered.

“As major stakeholders and independent marketers, we believe Dangote should be allowed to sell directly to us.

“The distribution should be open so that other stakeholders can purchase the product, just like NNPC,” he said.

Ukadike contended that the NNPC is also a competitor in the downstream sector with other marketers.

This, he said, makes it wrong to give a single competitor exclusive access to Dangote Refinery petrol, while others remain dependent on a single source.

He believes the situation will lead to “monopoly, profiteering and stagnation in the distribution process.”

He called on the government to intervene, arguing that: “It is crucial that what is good for one is good for all.

“IPMAN should be allowed to obtain products directly because we can quickly distribute them, as we have a wide reach across the country and are reliable.”

Also, an association of oil and gas law experts, Lawyers in Energy Network, faulted the monopolistic distribution of Dangote Refinery petrol.

It urged the Federal Government to allow other players rather than only the NNPCL as the off-taker.

Lawyers in Energy Network, in a statement by its Executive Secretary Raqeebah Oloko, said though NNPCL as the sole off-taker may ensure consistency and stability of demand and sales while simplifying distribution complexities, the disadvantages may have far-reaching consequences for the Nigerian energy market.

The statement adds: “Dependence on a single buyer exposes both the Dangote Refinery and Nigerians to the risks of monopoly and absolute market control by the NNPCL.

“This move will also reduce the benefits of competition by stifling innovation, supply and pricing advantages in the Nigerian market.

“Should there be a change in policies or regulations affecting NNPCL, this would undoubtedly affect the petroleum market.

“We at Lawyers in Energy Network call out to the Nigerian government to break this monopoly and allow the free flow of purchase of fuel to all marketers in the country.

“This will give room for the principles of demand and supply to determine market prices and availability of the product.”

Also, an economist, Prof. Ndubuisi Ekekwe, believes more players should be allowed to distribute Dangote Refinery petrol.

In a post on his X handle @ndekekwe, he stated: “I posit that 40 per cent of ‘I need US dollars’ will disappear…(with local petrol production). In short, I was to put my near-term positioning of naira to be about N1,000/$ by December 2024.

“Unfortunately, I am unable to do that, because Dangote Refinery will not sell to independent operators of filling stations; the Nigerian government will be the sole buyer.

“With that structure, the promising optimal equilibrium shifts. Why do we need the government inserted in the process?

“Ideally, the more players you disintermediate, the better the pricing efficiency since every layer adds cost in the value chain.”

National President of IPMAN, Abubakar Maigandi, said the association would see how things unfold.

He said what Is of more concern now is how to get the outstanding products its members paid for since June at the old rate.

“Our members who paid for the product since June and have not been supplied petrol by NNPCL until the new price kicked in on Tuesday.

“The NNPCL is now asking that we come to pay the differential on the product. It is not our fault that we were not given the supplies we paid for in June.

“We have over 3,000 tickets outstanding with the NNPCL and they are asking us to add N240 per litre, being the difference between the price at the time we paid for it and were not supplied and the new price which began on Tuesday,” Maigandi said.

In July 2023, an indigenous oil marketing firm, Emadeb Energy, invested over $17 million to import 27 million litres of petrol cargo.

Since then, no marketer other than NNPCL has been able to bring in PMS due to the foreign exchange rate which now stands at N1,625.83 to a dollar compared to N834 when Emadeb brought in the product.

Presidency, NLC clash over Ajaero’s claim on N70,000 minimum wage, fuel price adjustment

The Presidency and the Nigerian Labour Congress (NLC) yesterday clashed over the N70,000 minimum wage and adjustment in the pump price of fuel.

The Presidency dismissed claims by NLC President Joe Ajaero that President Bola Ahmed Tinubu betrayed labour leaders because of the increase in the petrol pump price.

Ajaero alleged that labour accepted the N70,000 national minimum wage based on an understanding that the pump price of PMS would not be increased.

However, reacting to Ajaero’s allegation, Senior Special Assistant to the President on Print Media, Abdulaziz Abdulaziz, on his verified X handle, @Abdulfagge, said he was in the last two meetings where President Tinubu met with Labour leaders, noting there was none where an offer was made in exchange of fuel price hike.

The Presidential spokesman described Ajaero’s claims as “dirty politics” aimed at manipulating the emotions of Nigerians.

But the NLC insisted that there was an agreement with President Tinubu not to increase the pump price of petrol.

In a statement by its Head of Information and Public Affairs, Benson Upah, the NLC said: “We find amusing the denial of Abdulaziz. We have since asked ourselves if he is suffering from selective amnesia or attention span deficit.

“However, not satisfied with his dubious denial, he elected to take a side dig at Comrade Joe Ajaero as ‘…once again playing his dirty politics with the emotions of Nigerians.’

“Whatever the matter is with Abdulaziz, we stand by our statement. And if Abdulaziz was at those meetings as he claimed, he should be courageous enough to let the world know whether the President gave the labour leaders one hour to meet and resolve to either accept and allow an increase or accept N62,000.” (The Nation)

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