Nigerian Motorists Face Fresh Economic Concerns as Fuel Prices Soar to N1,030 Per Litre
A sudden fuel price hike to N1,030 per litre has sparked widespread outrage among Nigerian motorists and consumers, following the Nigerian National Petroleum Company Limited’s (NNPC Ltd) decision to end its exclusive purchase agreement with Dangote Refinery.
This significant increase from the previous N897 per litre has far-reaching implications.
At an NNPC outlet in Abuja, Glory Okoye shared her frustration with journalists: ‘The price jump from N897 to N1,030 is unbelievable.’
The price surge has caused long queues at NNPC stations across the Federal Capital Territory, with motorists expressing dismay at the sudden increase.
The price hike follows NNPC’s strategic shift from being the sole off-taker of Dangote Refinery’s products.
Under the new willing buyer, willing seller arrangement, other marketers can now purchase directly from the refinery.
The NNPC had claimed in September that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre. However, the company said this arrangement is no longer sustainable.
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For consumers like Mohammed Ibrahim, a taxi driver in Abuja, the price increase poses significant challenges: “How do we survive this? Every time we adjust fares to match fuel prices, we lose customers. It’s becoming impossible to make ends meet.”
The termination of the exclusive agreement may foster market competition but raises concerns about price stability and accessibility.
With retailers now negotiating directly with the refinery, prices may vary widely. This change adds to the nation’s economic concerns, particularly for Nigerians already struggling with transportation costs and living expenses.
