November 12th, 2024: Update On Petrol Price Hike And Fuel Supply Challenges

November 12th, 2024: Update On Petrol Price Hike And Fuel Supply ChallengesAs Nigerians continue to grapple with the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, Naija News provides the latest developments on fuel scarcity, price increases, and reactions from the government and citizens.....KINDLY READ THE FULL STORY HERE▶

IPMAN, Dangote Reach Deal for Direct Petrol Supply

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a significant partnership with Dangote Refinery for the direct supply of fuel products. This agreement was confirmed by IPMAN’s National President, Abubakar Garima, at a press briefing in Abuja on Monday, following a meeting with the Association’s National Working Committee.

Garima revealed that the partnership will ensure a steady and affordable supply of Premium Motor Spirit (PMS), Diesel (AGO), and Dual Purpose Kerosene (DPK) across Nigeria. The deal, which follows months of negotiations, is expected to boost supply, improve efficiency, reduce prices, and support economic growth.

“This agreement with Dangote Refinery will help in integrating backward into local production, reduce reliance on imports, and potentially enhance Nigeria’s foreign exchange reserves,” Garima stated, urging IPMAN members to support the partnership, which aligns with President Bola Tinubu’s economic development goals.

Petrol Landing Cost Drops, But Prices Surge

The landing cost of Premium Motor Spirit (PMS) has dropped by 20.34% in the last three months, now standing at ₦971.57 per litre, reflecting a reduction in importation and distribution costs. This drop, attributed to shifts in global market conditions and supply chain dynamics, is a sign of relief for the economy.

Despite this reduction, the retail price of petrol has risen significantly. As of November 8, 2024, the price per litre increased by ₦443, or 71.79%, from ₦617 in August 2024 to ₦1,060 per litre. Independent marketers are selling at even higher prices, up to ₦1,180 per litre. The rise in retail prices contrasts sharply with the falling landing costs, fueling concerns over the impact on Nigerians.

Recent data from the Major Oil Marketers Association shows that while the landing cost of petrol dropped to ₦971.57 per litre in November, oil marketers imported petrol at ₦1,219 per litre back in August when Brent crude was priced at $80.72 per barrel. However, with Brent crude now at $75.57 per barrel and an exchange rate of ₦1,665.84 per dollar, the cost of importing petrol has decreased, yet the retail price has continued to climb.

HURIWA Alleges Fuel Price Hikes Benefit Tinubu’s Allies

The Human Rights Writers Association of Nigeria (HURIWA) has criticized the government’s recurrent fuel price hikes, claiming they are part of a strategy to financially benefit President Bola Tinubu’s associates and allies. In a statement signed by HURIWA’s National Coordinator, Emmanuel Onwubiko, the group argued that these fuel price increases are not aimed at assisting ordinary Nigerians.

HURIWA claimed that the policy of hiking fuel prices is designed to reward cronies of the current administration rather than alleviate the suffering of the Nigerian populace. “The hikes in fuel prices were never intended to help ordinary Nigerians. Instead, they are designed to financially benefit the allies and business associates of those in power,” Onwubiko stated.

The group also noted that the rising cost of fuel has triggered price hikes in essential goods, pushing millions of Nigerians deeper into poverty. “The increasing costs of fuel have destabilized prices of food and essential items, exacerbating hunger, malnutrition, and poverty across the country,” HURIWA added, calling for a reevaluation of the government’s fuel pricing policy.

While these rising fuel costs have bolstered profits for a select few in the oil and gas sector, HURIWA argued that they have done little to benefit the vast majority of Nigerians, who continue to struggle with the high cost of living.

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