Energy
Petrol’s Pump Price Skyrockets From 6 Kobo To 61,700 Kobo
The astronomical increment of the pump prices of Premium Motor Spirit (PMS) also known as, petrol has seen it rise from 6 Kobo/litre in 1970 to 61,700/litre as at August 27, 2023.
Data sourced from various online sources by Biztellers indicate that the pump price of petrol has been increased a record 29 times since the Gen Yakubu Gowon regime fixed the price at 6 kobo in 1970.
It stood at that rate for three years before the same government adjusted it to 8 Kobo in 1973.
And by 1978, when the then Gen Olusegun Obasanjo adjusted the pump price to 15 Kobo, Nigerians cried out in anguish.
The first civilian government to tinker with the pump price of petrol was the President Shehu Shagari regime, which adjusted it to 20 Kobo/litre.
That was in 1983 after Shagari had managed the 15 Kobo price it inherited from Obasanjo for more than four years, dating back to 1978.
The price stability was maintained during the tenure of the Gen Muhammadu Buhari military regime of 1984. Even his successor, Gen Ibrahim Bagandiga didn’t adjust the price until 1986, when it was adjusted to 39 Kobo/litre.
Two years down the line, Gen Babangida increased it again to 42 Kobo, before adjusting it to 68 Kobo in 1990 and 70 Kobo in 1991.
Increases in pump price of petrol had always attracted public outcry with civil society rising in one accord against the move by government.
The Interim Government led by Ernest Shonekan jerked it up from 70 Kobo to N5/litre in 1992 with the attendant public uprising enough to consume the government.
Gen Sanni Abacha shoved Shonekan aside and reduced the pump price to N3 25 Kobo, only to jerk it up to N15 in 1994 amidst fuel scarcity that threatened the economy.
When the masses rose up against the move, Gen Abacha reduced it to N11/litre in 1995, before Gen Adulsalam Abubakar who took over after the demise of Gen Abacha pegged the pump price of petrol at N25 in 1998.
The level of public outcry that greeted the move, compelled Gen Abubakar to reduce it to N20/litre 1999.
When Chief Olusegun Obasanjo was elected President in 1999, he tinkered with the pump price of petrol six times in his eight-year tenure.
He first adjusted it to N50/liter in 2002, the back to N22/litre and up to N26/litre the same year, before moving it up to N42/litre in 2003, N65/lite in 2004 and N75/litre in 2007.
Obasanjo’s successor, President Umar Yaradua, in an apparent response to public lamentation, reduced the pump price of petrol to N65/litre.
Yaradua’s tenure was short-lived, and his success, President Goodluck Jonathan, who was in office for about six years, tinkered with the pump price of petrol for three times.
Under Jonathan, Nigerians saw the pump price of petrol move to N141/litre in 2010, back to N97/litre the same year, and down to N87/litre in 2011.
The pump price of petrol had become a tool in the hands of politicians and those desperate to hang on to power had to pander to popular sentiments, hence, the Peoples Democratic Party (PDP) under President Jonathan’s leadership had to toy with the idea of reducing pump price of petrol.
Then came the All Progressives Congress (APC) with President Muhammadu Buhari in 2015.
The former military ruler was in power for eight years, taking his two four-year terms as President, within which period he tinkered with the pump price of petrol several times in a fluctuating manner that tended to reflect his government’s negotiating power with restive civil society groups.
In 2015, President Buhari increased the petrol to N141/litre and in 2016 to N165/litre, before pegging it at N180/litre in 2020, where it was until he left office in May 2023.
N180/litre was where the President Bola Ahmed Tinubu administration met it and on May 29, 2023, before the popular ‘subsidy is gone’ anchor mounted pressure on the prices and saw it hit the roof.
President Tinubu’s less than three-month tenure has seen pump price of petrol adjusted twice from N180 where he met it to N480/litre in June to N617/litre where it is hovering at the moment.
Sadly, it does appear that the current price per litre is a mere suggestion around which marketers could weave their profit, though some do so unscrupulously.
Recall that Commissioner for Special Duties, Enugu State, Emeka Ajogwu, on Friday, while on an unscheduled visit to some petrol stations in the Enugu metropolis to ascertain the alleged metre manipulation by filling station owners, cautioned them against ‘sharp practices’.
According to him, “Over 20 filing stations visited adjusted their metres and sold between N600- N620 per litre, respectively.
“It was confirmed that for every 20 litres of petrol bought, consumers were shortchanged to the tune of N768.60, N702, N682.00, N575.00, N441.60, N480.00, and N256.20 respectively.”
Sadly, this situation is replicated across Nigeria, and the pressure on the Foreign Exchange Market in addition to fluctuating global crude prices tend to guarantee that these incessant increment would continue in the domestic market.
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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