Fuel Prices Soar Above Approved Bands in Nigeria, Hitting Consumers Hard

Filling stations in Nigeria, particularly those run by independent marketers, are dispensing Premium Motor Spirit (PMS), commonly known as petrol, at prices exceeding the government’s approved price bands.

Some petrol stations in the North have been seen charging as much as N685 per litre, above the government-stipulated rate.

In July, the pump price of petrol was raised from a range of N537 to N550 per litre to N617 per litre at filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) in Abuja and many Northern states.

In other regions, prices increased from between N488 and N500 per litre to about N580 per litre in Lagos and the South-West, and N515 per litre to about N600 per litre in the South-South.

Independent oil marketers have confirmed that shifts in the NNPCL station prices indicate a government-approved increase in petrol prices.

This is because the NNPCL, being the primary petrol importer, reflects any price adjustments approved by the Federal Government.

The NNPCL is currently the sole petrol importer into Nigeria, as other marketers have ceased importing due to challenges in accessing U.S. dollars needed for fuel imports.

Despite the government’s official price bands, some dealers have been charging as much as N685 per litre, particularly in Northern states such as Sokoto and Taraba.

In Abuja, independent dealers have raised their pump prices to as high as N630 per litre, while black market traders are selling petrol for approximately N850 per litre.

The discrepancies in petrol pricing have created challenges for consumers and raised concerns about the impact on the cost of living in Nigeria.

The recent removal of fuel subsidies has contributed to the fluctuation in petrol prices, making it more expensive for the average Nigerian.

Independent dealers have pointed to the high cost of diesel as a factor in the higher petrol prices. The cost of diesel is a critical component in transporting petrol, and the rising diesel prices have contributed to the overall increase in petrol prices.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, the regulator of the downstream oil sector, has not provided a formal explanation for these developments, leaving many Nigerians concerned about the rising fuel prices and their economic impact.