Backlash as NNPC Ltd jerks up PMS pump price to N897/litre
…NLC, NECA, motorists accuse FG of betrayal, reneging on promises
…No directive was issued to increase petrol price — Minister
…Stakeholders applaud Dangote, as refinery rolls out PMS
…New PMS pump price will push more Nigerians into poverty — Expert
By Our Reporters
The recent announcement by NNPC Ltd of a dramatic increase in the petrol pump price to N897 per litre has sparked widespread outrage and backlash across Nigeria. This sharp hike, coming amid already soaring inflation and economic instability, has ignited fierce criticism from various sectors.
This is coming barely 48 hours after Dangote refinery begins production of petrol.
NewsDirect findings on Tuesday, showed that most retail stations of the NNPC had adjusted to the new price of N897/litre.
NNPC Ltd stations in Ikoyi, Victoria Island, Gbagada, Ikeja, and Ikorodu Road have adjusted their prices to N855 per litre.
Major oil marketers such as Northwest, Mobil, TotalEnergies, and NIPCO are selling petrol between N868 and N900 per litre.
…NLC demands reversal of petrol price Hike, electricity tariff increase
Amid various reactions, the Nigerian Labour Congress (NLC) has issued a stern call for the immediate reversal of the recent increase in petrol prices and the controversial 250 percent hike in electricity tariffs.
In a statement released on Tuesday, NLC President Comrade Joe Ajaero condemned the federal government’s actions as a profound betrayal of the Nigerian people.
Ajaero expressed deep frustration over what he described as a “clandestine” increase in petrol prices, criticising the government for reneging on promises made during negotiations over the national minimum wage. He recalled that the acceptance of a N70,000 minimum wage was predicated on the assurance that petrol prices would not rise, a promise that has now been broken, leaving Nigerians in a state of economic despair.
The NLC President decried the government’s handling of the fuel subsidy removal and accused it of worsening the economic situation with its harsh policies.
“The recent fuel price hike is just one example of the government’s ferocious right-wing market policies that have led to hyperinflation, unemployment, and poverty,” Ajaero stated.
He also criticised the government’s failure to address the 250 percent increase in electricity tariffs, which has further burdened both households and businesses.
Ajaero’s statement highlighted the ‘repressive tactics’ employed by the government, including the arrest and prosecution of protesters who opposed these economic measures. He denounced these actions as attempts to “muzzle lawful dissent” and misuse of security forces.
The NLC’s demands include an immediate rollback of the petrol price increase, the release of all detained protesters, and a halt to the arbitrary arrests and detentions of citizens. Additionally, the NLC is calling for a reversal of the electricity tariff hike, an end to the interference in the Ministry of Labour and Employment, and a stop to policies that contribute to widespread hunger and insecurity.
“We stand resolute with the people and will not be cowed into submission,” Ajaero asserted.
…New pump price of petrol worrisome, unfair — NECA
In a swift response, the Nigeria Employers Consultative Association (NECA) has said the new hike in pump price of Premium Motor Spirit (PMS), also known as petrol, is worrisome and unfair.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde said this in a statement while reacting to the new hike in pump price of PMS on Tuesday in Abuja.
According to Oyerinde, the new pump price of petrol is not only worrisome but also unfair.
“We had expected that the government will leverage on the momentum created by the completion of the Dangote refinery and the planned commencement of operation of the Port-Harcourt refinery.
“This is in order to clear the obvious self-inflicted pain on Nigerians and progressively reduce the pump price of petrol. This seems not to be the case.
“This new pump price could be seen as making Nigerians pay for the crass inefficiency in the NNPCL,”he said.
He said that rather than address the fundamentals that have made Nigeria a net importer of petrol, even when we have four refineries, the government has continued to inflict pain on Nigerians.
According to him, the government is, inadvertently, contributing to the increase in cost of doing business.
“We advise that the government should have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses, “he said.
…Motorists decry increase, predict fare hike nationwide
Motorists have, however, gathered that the increment would lead to an increase in fare across the country.
A staff member of an e-hiring service, Jelil Afeez, expressed concern about the impact of fuel scarcity on operations, citing that he was shocked when he got to the NNPC retail outlet to see N855/litre on Tuesday morning.
“I got to the filling stations to see N855/litre this morning. It was so annoying and I didn’t even know what to do. How much will independent marketers now sell?” he asked.
A commuter, Abiola Olatunde, expressed frustration over a fare increase from Ikeja to Ogba, questioning why the fare had risen from N200 to N400.
Njoku Agbakansi lamented that N3,000 worth of fuel, which used to last a day, now requires a budget of N15,000 per week, depending on travel distance. She urged the government to resolve the issues in the petroleum sector or step aside, emphasising the widespread impact of fuel prices on daily expenses.
Henry Okeke, a motorist from Gbagada, Lagos, expressed his dismay at the unreliability of the fuel supply system. He recounted a lengthy wait to secure fuel for a journey to Epe and questioned whether this was the standard Nigerians should accept.
Akin Joshua described buying fuel at Egbeda for N950 per litre, noting that passengers are complaining and seeking cheaper fares, which is impacting transporters who face high costs at filling stations.
Major cities like Lagos, Abuja and other parts of the country are experiencing severe fuel shortages, with prices at some stations reaching as high as N1,200 per litre.
…New PMS pump price will push more Nigerians into poverty — Expert
An economic expert, Dr Sand Mba-Kalu, says the fuel price hike by NNPC Ltd from N617 per litre to N897 litre will push more Nigerians into poverty.
The expert said the sudden increase in Premium Motor Spirit (PMS) pump price by the Nigerian National Petroleum Company Limited (NNPC Ltd.) was beyond a simple fuel price adjustment.
He said that it would have a far-reaching impact on Nigeria’s private sector, trade and the already suffering Nigerian masses.
Mba-Kalu, the Executive Director, Africa international Trade and Commerce Research said this in an interview with journalists while reacting to the development.
Mba-Kalu said without government interventions, the economic and social repercussions of this price hike could be severe and long-lasting, pushing more people into poverty.
“What we will witness is the immediate high cost of transport, which will lead to higher costs of food and inflation.
“In the long term, it could pose challenges for small and medium-sized enterprises (SMEs) and the agricultural sector,” the expert said.
He urged the Federal Government to acknowledge these implications and consider measures to reduce the impact, such as targeted incentives for energy efficiency, stopping wasteful spending, and reducing cost of governance.
“Without such interventions, the economic and social repercussions of this price hike could be severe and long-lasting, pushing more people into poverty,” he warned.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Ukadike Chinedu, said that NNPC Ltd had not officially informed marketers about the price increase.
Chinedu said that depot owners and marketers were awaiting further directives from NNPC Ltd.
He expressed optimism that Dangote Refinery’s entry into the market would enhance product availability and address scarcity issues.
“I anticipate that Dangote will increase the supply of petrol and automatic gasoline oil in the Nigerian market.
“Marketers should be allowed to purchase products from Dangote and compete with NNPCL,” Chinedu added.
He said that availability was crucial, but noted that competition would follow.
…Petrol price hike unavoidable, eases subsidy burden
An oil and gas consultant, Mr Henry Adigun reacting said that while the price increase was a step towards addressing the subsidy issue, it did not resolve the need for total deregulation of the downstream petroleum sector.
“Unless market prices align with international product prices, NNPC Ltd will remain the sole importer,” Adigun explained.
He welcomed the commencement of petrol production by Dangote Refinery, but noted that Dangote’s supply would hinge on favourable market conditions.
Adigun also emphasised the need for collaboration with marketers, as direct loading from the gantry might not be feasible for many distributors.
Dr Ayodele Oni, Partner at Bloomfield Law Practice, described the price increase as unfortunate but reflective of market realities.
Oni questioned whether the new price covers all costs and provides a sufficient margin.
“If the new price is market-driven and covers all costs, it will be effective. Otherwise, we may face the same issues,” he said.
Oni noted that the Petroleum Industry Act (PIA) encourages market pricing rather than monopoly.
He suggested that while availability might improve, prices were unlikely to decrease significantly.
…No directive was issued to NNPC Ltd to increase petrol price — Minister
Meanwhile the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri has said that no directive was issued to the Nigerian National Petroleum Company Limited (NNPC Ltd.) to increase petroleum prices.
Lokpobiri in a statement on Tuesday issued by his Special Adviser, Media and Communication, Nnemaka Okafor said he did not direct the NNPC Ltd. or any other entity within the sector to manipulate prices.
“The Federal Government has been compelled to address the outright falsehood and malicious claims currently circulating on social media.
“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent.
“We challenge anyone in possession of any evidence-be it written documents, audio, or video recordings-that supports these fabrications to make it public.
“Such a claim is entirely devoid of truth and should be recognised as an intentional effort to mislead the public,” he said.
He noted that the NNPC Ltd. operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors and the Ministry of Petroleum Resources does not, and will not interfere in NNPC Ltd.’s internal decisions, including pricing matters.
“Any suggestion otherwise is not only incorrect but also reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector,” he said.
He advised the public to dismiss these malicious rumours.
“Any claim to the contrary is nothing more than an ill- conceived attempt to sow discord and confusion.
“We urge all Nigerians to remain vigilant and rely solely on information from verified and official channels,” he said.
…NNPC’s $6bn debt to oil traders confirms Tinubu not lying about fuel subsidy removal — Onanuga
Also, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the $6 billion owed to oil traders by the Nigerian National Petroleum Corporation (NNPC) Limited serves as clear proof that President Tinubu was truthful about the removal of the fuel subsidy.
Onanuga made this remark on X, formerly Twitter, on Tuesday.
The presidential spokesperson stated that the debt arose because the budget did not account for the fuel subsidy, leaving the NNPC to bear the burden of the price difference caused by the devaluation of the naira and the high cost of crude oil.
“I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admittance it was owing suppliers some $6 billion.
“Some of the stories have been written with relish, as the authors believed they have uncovered some scoops.
“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023. Since then, subsidy provisions have disappeared from the budget. It was not in the Supplementary budget of 2023, not in the 2024 budget and the amended 2024 budget.
“The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent. The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government,” Onanuga said.
…Stakeholders applaud Dangote, as refinery rolls out PMS
Meanwhile, stakeholders in the government and private sector have applauded Aliko Dangote, President of Dangote Group as his refinery begins rolling out petrol to the Nigerian market.
Petrol produced from the 650,000 barrels per day Dangote refinery is expected to hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited have been formalised.
In a statement on Tuesday, Ogun State Governor, Prince Dapo Abiodun, said the commencement of fuel production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.
Prince Abiodun, in a statement on Tuesday signed by his Chief Press Secretary, Lekan Adeniran, said that with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation—will be solved.
According to the statement, with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians will heave a sigh of relief from constant fuel shortages, while the economy will also receive a boost.
Prince Abiodun praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.
The governor also commended President Bola Ahmed Tinubu for his intervention in ensuring that the refinery comes on stream during his administration.
He praised the President’s commitment to the revitalization of other refineries in the country, which, he said, will drastically reduce fuel prices when all of them start production.
He said, “This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent. The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.
“The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel. This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.
“By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy. This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.’
“Moreover, the economic impact of the refinery extends beyond just fuel production. It is expected to generate thousands of jobs, both directly and indirectly, thus contributing to the reduction of unemployment rates. The ripple effect of this employment generation will invigorate local economies, stimulate growth in ancillary industries, and enhance the livelihoods of countless families across Nigeria.
“In addition to bolstering local employment and economic activity, the refinery’s operations are expected to enhance energy security in Nigeria. With the capacity to produce a substantial volume of petrol, the country will be better equipped to meet its energy needs, reducing the volatility associated with fuel shortages and price fluctuations.
“This stability will inevitably create a more favourable environment for businesses and attract foreign investments, further boosting economic growth,” he wrote.
In the same vein, Chairman of Geregu Power, Mr Femi Otedola congratulated Dangote on Tuesday on his X, formerly Twitter, handle, shortly after Dangote spoke in a broadcast to unveil the first sample of Premium Motor Spirit, commonly known as petrol.
According to the billionaire, the refinery idea was conceived 25 years ago to transform the country’s energy landscape and liberate Nigerians from the economic dependence that has been holding the country back.
“Aliko, it feels like just yesterday, but it has been 25 long years since we first set our sights on transforming Nigeria’s energy landscape. I remember vividly when we set up the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries—20 per cent for me and 51 per cent for you.
“The government of the day, in an act I can only describe as utterly obnoxious, cancelled our stakes and thwarted our vision. But, as always, you refused to be deterred. You never gave up on the dream we shared. You carried the torch forward, igniting a spark that has today become a roaring flame. And now, 25 years later, here we stand on the precipice of history, with the first fuel shipment from the Dangote Refinery—a feat that is nothing short of miraculous.
“While the Kaduna and Port Harcourt refineries have remained dormant, their promise unfulfilled despite billions of dollars spent on so-called turn-around maintenance, you have achieved what many said was impossible. You have beaten all the sceptics, silenced the naysayers, and proved wrong those who doubted your resolve, even those who never wanted this project to succeed.
“You have not just built a refinery; you have liberated us from the chains of economic dependence that have held this nation back for far too long. The days of bowing to foreign powers for our fuel needs are over, thanks to your vision and determination. You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery. These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end.
“I am reminded of the time you revolutionised the cement industry in Nigeria. Ships that once brought in cement turned into rusting relics, scraps of a bygone era. Now, with your refinery in full swing, I foresee a similar fate for fuel imports. The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high. The world has changed, and those who do not adapt will be left behind.
“When I ventured into the depot business with Zenon, it was in response to the inefficiencies of the NNPC. Zenon pioneered the diesel business in Nigeria and quickly became the largest in the country, filling the gaps left by our inefficient system. But today, your refinery stands as a beacon of what is possible when one has the audacity to dream and the tenacity to see it through.
“Aliko, you have my deepest admiration and respect. Congratulations to you and the entire board, management and staff of Dangote Refinery on this monumental achievement. This is not just a victory for you but for every Nigerian who dares to dream. May this be just the beginning of even greater things to come. With profound respect and warmest regards, F. Ote$,” Otedola wrote.
Similarly, Nigeria’s Minister of Petroleum Resources (Oil), Sen. Heineken Lokpobiri Ph.D. congratulated Dangote noting that the successful in-country refining of Premium Motor Spirit (PMS) will significantly reduce Nigeria’s dependence on imported petroleum products and strengthen her energy security.
“Under the leadership of President Bola Ahmed Tinubu, this administration remains committed to enhancing local refining capacity and ensuring energy security for all Nigerians. I reaffirm our dedication to supporting initiatives that drive the nation toward self-sufficiency in petroleum refining,” Lokpobiri said.
…FEC to set petrol price for new refinery output — Dangote
In addition, Aliko Dangote announced on Tuesday that the Federal Executive Council (FEC) is working on establishing a new pricing structure for petrol produced at the Dangote Refinery.
On the topic of retail pricing, Dangote explained, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”
In June, President Tinubu had approved the sale of crude oil to the Dangote Refinery in naira, a decision aimed at lowering the prices of domestically refined petroleum products. Dangote highlighted that this measure would reduce the need for foreign exchange by 40 percent.
“I would like to salute the people of Nigeria and the government of President Bola Tinubu for creating the environment for us to thrive and also achieve this monumental task of providing energy for growth and prosperity,” Dangote said.
He also expressed appreciation to President Tinubu for the initiative of using naira for both crude oil and refined products, noting that this strategy would bring significant stability to the naira and reduce the demand for dollars by 40 percent, addressing concerns related to round-tripping and further economic stability.
