PETROL prices in Nigeria soared to an all-time high of 617 naira ($0.7802) per litre on Tuesday, marking the second consecutive month of price increases since President Tinubu eliminated a popular but costly fuel subsidy in May.
According to a circular seen by Reuters, fuel stations operated by the state-owned Nigerian National Petroleum Co. Ltd. (NNPC) updated their prices nationwide from 557 naira per litre. The NNPC did not immediately provide any comments in response to calls.
Clement Isong, the head of the Major Oil Marketers Association of Nigeria (MOMAN), attributed the price hike to the rising global oil prices and the devaluation of the naira against the dollar. He emphasised the need for retailers to recover costs, stating, ‘there has to be cost recovery.’
MOMAN, which represents Nigeria’s six largest fuel retailers, including the NNPC, holds about a third of the petrol market share.
President Tinubu’s decision to end the fuel subsidy, which had maintained affordable prices for decades but had become increasingly expensive, costing the government $10bn last year, is part of the country’s major reforms to address various issues, including its high debt burden.
Since the removal of the subsidy, 56 private firms have been licensed to import petrol, with 10 of them scheduled to supply in the third quarter, thus breaking NNPC’s import monopoly. The NNPC had been the sole importer of petrol through crude swap contracts.
‘Out of these 10, three of them have already landed cargoes… and others are also indicating interest to import in August and September,’ said Farouk Ahmed, the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
As Africa’s largest oil producer, Nigeria relies heavily on fuel imports due to inadequate refining capacity and neglect of existing refineries.
(with Reuters)
