A visit to an NNPC filling station in the Central area of Abuja on Tuesday morning showed that the fuel price had been adjusted from N539 to N617 per litre. A consumer told Daily Trust that he purchased at the new cost. “It is true, I just bought at N617 per litre,” he explained.
The immediate cause could not be determined, although it could be related to recent estimates by oil marketers that petrol costs could soon reach N700 per litre.
Some oil marketers anticipated that after independent marketers begin importing the products in July, fuel prices in the northern area might soar above N700 per litre and approximately N600 in Lagos.
Their forecasts were based on the current strong exchange rate, crude price, and landing cost.
As a result of the trend, lineups of motorists formed at several fueling stations in the Federal Capital Territory (FCT).
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Association of Distributors and Transporters of Petroleum Products (ADITOP) have both refuted that petrol prices will be raised to N700 per litre.
In an interview with the News Agency of Nigeria (NAN), the groups denied claims of a supposed increase in pump prices as speculative.
They stated that gasoline prices are determined by market forces, and that given the current high exchange rate, the pump price of Premium Motor Spirit (PMS), also known as petrol, could rise, thus the projection.
At the time of writing, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NDMPRA) has yet to respond to the Daily Trust question about the unexpected pump price rise.
President Bola Ahmed Tinubu announced the withdrawal of gasoline subsidies during his inaugural speech on May 29, raising the price of petrol from N195 to N540 per litre.
The rise in gasoline prices has already resulted in an increase in the cost of commodities. Food and transportation are the hardest hit.
Nigerians have been lamenting the impact of the elimination of subsidies on their life, but the Tinubu administration has promised assistance.
Tinubu asked Nigerians to be patient last week when he welcomed the Class of 1999 Governors.
He reassured Nigerians that a framework for palliatives to mitigate the effects of the elimination of gasoline subsidies was being developed.
“I understand that our people are suffering yet there can be no childbirth without pain. The joy of childbirth is the relief that comes after the pain. Nigeria is reborn already with fuel subsidy removal. It is a rebirth of the country for the largest number over a few smugglers. Please tell the people to be a little patient.”
“The palliative is coming. I don’t want cash-transfer to fall into wrong hands. I know it pinches and it is difficult. In the end, we will rejoice in the prosperity of our country,’’
He informed the governors, who were led by former Edo State Governor Lucky Igbinedion.
Tinubu had previously written to the House of Representatives, requesting that the 2023 supplementary appropriation act be amended to include N500 billion for the supply of palliatives for Nigerians.
The request was later approved by the parliament.
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