Energy
FG, Independent Marketers, Labour At Daggers Drawn Over Fuel Price
Palpable fear of mass tumult against the Nigerian Government owing to harsh economic realities might have forced the hand of the authorities in making public statements that there would be no further increase in the pump price of Premium Motor Spirit, popularly called petrol.
But this has not gone down well with the independent marketers, who insist that given the current market realties, there would be costs that the government has to take up or would be passed to the people.
In plain language, the marketers are insisting that either subsidy is reinstated or market forces would continue to determine the prices of products.
Biztellers served you a report that the Nigerian National Petroleum Company Limited (NNPCL) made it clear that it was not considering an upward adjustment in the pump price of petrol.
The state oil company, took its verified X (initially Twitter) handle, @nnpclimited late Monday to make the assertion.
The tweet, seen in several quarters as a move to douse tensions, was addressed to customers.
It reads, “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated.
“Please buy the best quality products at the most affordable prices at our NNPC Retail Stations nationwide.”
Being sensitive to the fact that he had been sitting on a keg of gunpowder, President Bola Ahmed Tinubu followed up on the tweet by NNPCL with his own tweet, assuring that there would be no hike in the pump prices.
On Tuesday, President Tinubu in an attempt at reassuring the populace, declared that there would not increase in the pump price of petrol.
President Tinubu at his verified official X handle, @NGRPresident tweeted, “Mr President and the industry stakeholders who have been widely consulted and convinced, based on information before them, that we can maintain current pricing without reversing our deregulation policy by swiftly cleaning up existing inefficiencies within the midstream and downstream Petroleum sector.
“This is why there is no increase in prices at this time”.
The statement, which was per say, issued under the seal of President Tinubu under the subject, “On the Purported Pending Increase in Fuel Prices” was signed by Official Spokesperson to President Bola Ahmed Tinubu, Ajuri Ngelale.
Many informed Nigerians have been reacting to the posturing from government quarters – the NNPCL and the Presidency, in a way that has made it begin to sound like a grandstanding by the authorities.
For instance, the statement from President Tinubu had spoken about consulting and convincing stakeholders with available information.
It also pointed to ‘cleanup’ of certain areas of the midstream and downstream sector without letting the world know what was required, who would be responsible and how long it would take.
The first salvo against the attempt to pool the wool over the people’s eyes was from fiery Nigerian journalist, Rufai Oseni, who asked for details of what it cost to get petrol to the pump for dispensing to consumers.
He took to his verified X handle, @ruffydfire to call attention to the fact that information being bandied in the public might have been inadequate.
He tweeted, “Dear NNPC, kindly let us know how you calculate petrol prices in Nigeria, stating inspection cost, Landing from Amsterdam or Rotterdam to Togo or to Nigeria, then state other cost components that make up the final price, factor in fx fluctuations.
“Thank you”.
Another sensitive aspect is that those in power want the world to believe that the market has been deregulated and will remain so but the reality on ground speaks differently.
Fuel queues are already beginning to show in certain parts of Nigeria, including Lagos and Abuja, while price hike is manifest with independent marketers having adjusted pump prices in different locations in tune with realities.
The base pump price of petrol has shifted from N612/litre to N670/litre. It was gathered that that the minimum price applied to NNPCL Retail outlets and some other filling stations, while others determined what prices to sell at.
Expectations are rife that this adjustment would see petrol being sold at above N800/litre at filling stations across Nigeria in locations outside Lagos and Abuja.
It had been hovering around N750/lite in those locations before this recent impact of foreign exchange and Brent price at the global market.
As that is playing out, Ngelale shared a graphic presentation of pump prices of petrol across West Africa, depicting Nigeria as the lowest.
Interestingly the second and more important salvo had come from the stakeholders that President Tinubu’s statement claimed were consulted and convinced.
The Independent Oil Marketers have taken the position that only a return to the subsidy regime would see the current price maintained.
Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, on Tuesday, opined that government should reconsider reversing itself because the subsidy removal has come with adverse economic impact.
He said, “Let them not do the needful. (Else, there) will see the consequences. We learned this morning that Kenya, which equally removed subsidy and noticed that its effect was so hard on the citizens, has again resumed the subsidy regime for the period of two months,”
He added, “Government is about the people and must have a listening ear. For Nigeria, how can we be an oil producing nation with four refineries and all of them are down?
“When he (President Tinubu) announced it (subsidy removal), we said it was going to bring problems. Are we not feeling the consequences of that announcement now? It is forex that largely determines the cost of petroleum products here.
“Marketers are not willing to import products again. So, if the government is going to relax the removal of subsidy for a while, it should better do that as a matter of urgency.”
While the government quarters and the relevant stakeholders are engaged in what now appears to be mind games and structured perception management messaging, Oseni on Tuesday shared what he considered the presenting landing cost of petrol in Nigeria.
He tweeted, “A breakdown of the landing cost of petrol showed that while product cost, as of yesterday (Monday August 14, 2023), was N627.82 per litre, finance cost was N11.61, and operations/administrative cost, N12.32, bringing the total landing cost to N651.75 per litre”.
As things stand, it appears that the reality confronting Nigerians is sterner economic hardship which would follow additional increases in the pump prices of petrol.
Alternatively, the government would have to swallow her pride and go back to subsidy.
Analysts are of the opinion that all outlets serving petrol below the calculated landing cost must have an avenue to recoup the outlay, which signals the obituary of the subsidy removal policy of the President Tinubu administration.
Given that organised labour, through the Nigerian Labour Congress (NLC) had placed relevant stakeholders on notice of immediate industrial action any time pump price of petrol is increased, it portends that a lot of wisdom would be required to avert crises in the present circumstances.
Amid a slight increase in gas production, Nigeria’s oil output experienced a substantial rise in November 2024.
Gas production saw a 2.9% month-on-month (MoM) increase, reaching 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October.
However, on a year-on-year (YoY) basis, the growth was minimal, with a mere 0.02% increase in output for the first 11 months of 2024, compared to the same period in 2023.
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The latest gas report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also revealed a 1.6% increase in domestic gas consumption.
A total of 606,658 MSCF was consumed locally, compared to 596,861 MSCF during the same period in 2023. Gas exports, meanwhile, rose by 6.9%, reaching 829,156 MSCF, up from 775,547 MSCF in the corresponding period of 2023.
This growth in exports continues to play a vital role in bolstering Nigeria’s foreign exchange earnings.
Despite these positive figures, sources close to the Ministry of Petroleum Resources (Gas) noted that oil remains the dominant force in Nigeria’s energy sector, with gas taking a secondary role.
On the other hand, the NUPRC’s oil production report revealed a remarkable surge.
Nigeria’s oil output, including condensates, rose by 13.3% year-on-year in November 2024, reaching 1.7 million barrels per day (bpd), up from 1.5 million bpd in November 2023. Month-on-month, oil production also increased by 10%, from 1.5 million bpd in October 2024.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), discussed the broader structural dynamics within Nigeria’s economy, highlighting the dominance of the non-oil sector.
In his 2025 Outlook, Dr. Yusuf noted that the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, while the oil sector accounted for just 5.57%.
“However, the economy is characterized by a paradox of the oil sector contributing an estimated 90% of foreign exchange earnings, while the non-oil sector accounts for about 10%,” Dr. Yusuf said.
“This is a structural shortcoming in our economy which needs to be addressed, as sectors that contribute hugely to GDP have no corresponding contribution to foreign exchange earnings.”
He further emphasized the need to address the challenges faced by the non-oil sector, which include issues related to productivity, infrastructure, funding, and regulatory constraints.
“The policy implication is that more should be done to fix the challenges of productivity and competitiveness of the non-oil sector of the economy,” Dr. Yusuf added
The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has become operational.
This is coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the disclosure during a tour of the facility on Monday.
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A video posted by Channels TV on Monday showed Kyari addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
Before the tour commenced, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
According to him, although the repairs on the facility are not yet 100 per cent complete, operations have commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
Located in Ekpan, Uwvie, and Ubeji, Warri, the petrochemical plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black.
Commissioned in 1978 and managed by NNPC Ltd, the WRPC was built to supply markets in the southern and southwestern regions of Nigeria.
The mechanical completion of the facility was initially scheduled for the first quarter of 2024, according to the Spokesperson of the NNPC Ltd, Olufemi Soneye.
“Warri should be done by Q1 (first quarter) 2024,” Soneye stated.
The WRPC is one of Nigeria’s four refineries. Others include the old and new Port Harcourt Refining Company in Rivers State and the Kaduna Refining and Petrochemical Company in Kaduna State.
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.
The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.
Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.
ALSO READ: Dangote Slashes PMS Price To N899.50k
It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM”
Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”
A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
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