- The company and the government are yet to agree on a pricing template
- NMDPRA is struggling to end the shortage and restore supply
Many activities are going on to overcome the shortage of petrol in the country.
Dangote Refinery, which announced the introduction of the product from its plant on Tuesday, could not make it available at the pumps yesterday as promised.
President Bola Ahmed Tinubu, who is in China on official business, directed a meeting chaired by Vice President Kashim Shettima, which was attended by the minister Heineken LokpobiriOil baron chief Mele Kyari and the National Security Adviser (NSA) Noah Ribadu,
Petrol shortage has been continuing since July and queues are increasing in cities.
On the same day that the Dangote Refinery resumed production with the promise of making petrol available within 48 hours, filling stations of the Nigerian National Petroleum Company (NNPC) Limited adjusted their meters to reflect the new prices.
Petrol that used to sell at 568 Nigerian Naira per litre at NNPCL petrol pumps in Lagos rose to 855 Nigerian Naira per litre.
In Abuja where it was selling at 617 Nigerian Naira, the oil company’s petrol pumps increased the price to 897 Nigerian Naira.
Petroleum regulatory agencies took significant steps and assured that soon there will be an abundance of petrol in the market.
Dangote Refinery, yesterday, said NNPCL was yet to lift petrol from its plant.
The Group Chief Branding and Communications Officer, Mr Anthony Chijina, in a statement said the issue of petrol pricing was yet to be finalised as the refinery was yet to finalise its contract with NNPCL.
“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix or influence the price of the product, which falls under the jurisdiction of the relevant government authorities.
“We are guaranteeing Nigerians exceptionally high quality petroleum products that will be readily available across the country,” the company said.
A source said yesterday that one issue that must be considered when discussing with the government is the cost of production or what has been termed the “production template”.
“This will determine the price,” the source said.
On whether the refineries would implement the new template made public on Tuesday, a highly informed source said it would depend on what Dangote Refineries presents as its cost of production.
Speaking on a television programme yesterday, the Executive Vice President, Downstream, NNPC Limited, Mr Adedapo Segun, said shortage of foreign exchange (forex) liquidity has been a major factor influencing the fluctuation in petrol price.
These are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021, he said.
He added that the current fuel shortage is expected to ease “in a few days as more stations recalibrate their meters and begin selling PMS.”
He said Section 205 of the PIA, under which NNPC Limited was established, provided that petroleum prices shall be determined by unrestricted free market forces.
Segun said: “The market has been deregulated, which means that petrol prices will now be determined by market forces instead of the government or NNPC Limited.”
“Additionally, the exchange rate plays a significant role in influencing these prices.”
On the commencement of lifting of PMS from Dangote Refinery, Segun said NNPC Limited was waiting for the September 15 deadline given by the refinery.
Segun said no right-thinking person would be comfortable with the current fuel shortage. He said NNPCL has about a thousand fuel filling stations across the country and they are working closely with marketers “to ensure that stations open early and close late, so that there is adequate fuel supply to meet the needs of Nigerians.”
“We are also liaising with the relevant authorities to ensure that the products are not misused and there is timely delivery at all stations. The shortage will reduce in the next few days as more stations start functioning again,” he added.
To tackle this shortage, the Nigerian Midstream, Downstream Petroleum Regulatory Authority (NMDPRA) said it has stepped up regulatory efforts to stabilise supply.
The Executive Director, Distribution System, Warehousing and Retail Infrastructure, Ogbugo Kalu Ukoha, spoke to journalists after briefing the Vice President, Shettima.
Ukoha said the regulator has extended operating hours at loading depots, ensuring prompt clearance of vessels, and extended exit hours for trucks where safety allows.
He also highlighted strengthening support for local refineries, saying increased production would boost supply, thereby stabilising prices.
“All regulatory efforts are now focused towards stabilising supply, which will, in turn, have a positive impact on price stability as well.
“The regulator has ensured that operating hours from all loading depots are extended, vessels are cleared promptly and operating hours are also extended for trucks where safety permits.”
“Even more importantly, local refineries are being supported, as increasing their production will boost supply, thereby stabilising prices.
“This is what the regulator is trying to do,” Ukoha said.
Lokpobiri assured Nigerians of adequate availability of petroleum products, which he said was expected to circulate across the country by the weekend.
The minister said there was enough product available in the country to meet the demand of Nigerians, and urged citizens not to indulge in panic buying.
He also clarified that the government is not fixing prices as the sector is deregulated.
He expressed hope that prices would stabilise with the availability of products.
“We were called by the Vice President who was directed by the President to call this meeting and we were with him to brief him on what is going on across the country.
“What is important for us is to let Nigerians know that the President is sympathetic to what is happening in the country.
“He is concerned about the hardship Nigerians are going through and that is why he directed the Vice President to call this meeting so that we can discuss the ongoing situation in the country.”
He said, “The important thing is that the products are available in the country and we believe that from now till the weekend the products will be available in every corner of the country.”
“Prices may be higher in some other regions, much higher in some other places, and much higher in some places than in others, but we believe as long as the products are available across the country, the prices will stabilise on their own.
“But the important thing is that the government is not fixing the prices.
“The sector is deregulated and we believe that with the availability of products, the price will come to its own level and this is important for Nigerians to know,” Lopkobiri said.
Kwara State Governor, AbdulRahman AbdulRazaq has directed the immediate deployment of buses to various parts of the metropolis to ease the movement of commuters.
“The purpose of the buses is to transport people to the most central destinations, free of charge.
“We hope this will help people attending job interviews at SUBEB, especially in metro cities,” he said.
The Governor also appealed to transporters and the general public to exercise patience over the fresh hike in fuel prices and said various government stakeholders were reviewing the situation with public interest as the top priority.
“We apologize for the inconvenience, and we trust that things will be fixed as soon as possible,” it added.
The House of Representatives demanded the case be overturned
But, the minority party in the House of Representatives demanded immediate withdrawal of the pump price hike.
In a statement, the caucus said PMS’ action to raise prices defies the principles of transparency, accountability, and fairness that should guide decisions affecting citizens’ lives.
The statement signed by Minority Leader Kingsley Chinda, titled “Withdraw Petrol Prices Immediately”, urged the President to take urgent measures to address the nexus between the poor economic situation and social unrest, rather than create conditions that will worsen an already poor economic situation.
The statement said: “The Minority Caucus of the House of Representatives strongly condemns the recent announcement of petrol price increase by NNPCL.
“This development is not only ill-timed but also extremely insensitive to the harsh economic conditions being experienced by Nigerians across the country.”
He said the increase would increase difficulties and could lead to more protests.
“The resulting unrest and chaos is a stark warning that economic instability can quickly translate into widespread social and political instability.
“However, it is important for all stakeholders, including government, business and civil society, to work together to address these economic challenges and restore stability before the situation deteriorates further.
“Tinubu’s government must urgently address the connection between the poor economic situation and social unrest, rather than create conditions that will worsen an already bad economic situation.”
The National Union of Road Transport Workers (NURTW) and the Tricycle Owners Association of Nigeria (TOAN) in Niger have announced an increase in transport fares due to the sharp increase in petrol price.
Union leaders attributed the fare hike to the recent rise in fuel prices and increasing cost of vehicle parts, which are affecting their operations.
Malam Ibrahim Musa, Chairman, NURTW Branch III, Abdulsalami Abubakar Garage, Minna, said the fare from Minna to Abuja had been increased from N6,000 to N7,000.
Similarly, he said the fare from Minna to Kaduna has increased from N6,500 to N8,000.
According to him, the fare from Minna to Juba and Dikko has now become N4,000 and N3,500 respectively from N3,500 and N3,000 previously.
Musa appealed to the federal and state governments to urgently address the rising costs affecting the transport sector before operators are forced out of business.
Similarly, Abubakar Ndanusa, President of TOAN in Niger, highlighted the burden of rising fuel costs and the increasing price of tricycles.
“The cost of a new tricycle has skyrocketed to between N3.2 million and N3.5 million. Many of us are on hire purchase agreements, which makes the cost even higher.
“We have no choice but to increase the fare by 50 to 100 Nigerian Naira per drop depending on the distance,” he said.
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