Persistent Fuel Price Hikes Spark Reactions Across Nigeria Despite Dangote, Port Harcourt Refineries

The rising cost of Premium Motor Spirit (PMS), commonly known as petrol, continues to generate widespread concern in Nigeria, despite the country now having two functional refineries: the Dangote Refinery and the rehabilitated Port Harcourt Refinery.

Nigerians had anticipated that the commissioning of these refineries would lead to lower fuel prices. However, this expectation has been repeatedly dashed as petrol prices have surged since the removal of fuel subsidies in May 2023, a decision announced by President Bola Ahmed Tinubu.

Timeline of Price Hikes

Following the subsidy removal, the Nigerian National Petroleum Company Limited (NNPCL) raised petrol prices from ₦195 to between ₦448 and ₦557 per litre, marking a 185.64% increase. The government justified the decision, stating that the subsidy was financially unsustainable, costing over ₦400 billion monthly.

Barely a month later, in June 2023, the price jumped again to ₦617 per litre, a 10.77% increase, attributed to global market dynamics. By September 2024, the price soared further to between ₦855 and ₦897 per litre, representing a 45.38% hike. NNPCL cited severe financial pressures and mounting debts to petrol suppliers as reasons for the increases.

The most recent hike saw prices climb to ₦1,030 per litre, following NNPCL’s decision to withdraw as a middleman between marketers and the Dangote Refinery, allowing direct transactions between the refinery and marketers.

Production and Challenges

The Dangote Oil Refinery began producing petrol in September 2024 after delays caused by crude shortages. Meanwhile, the Port Harcourt Refinery, with a nameplate capacity of 60,000 barrels per day, resumed operations following extensive rehabilitation. Despite these developments, Nigerians have not experienced the anticipated relief.

NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized that having operational refineries does not guarantee lower fuel prices, as global market forces heavily influence pricing.

Public Reactions

Many Nigerians have expressed frustration over the continued price hikes.

– Hassan Alowonle criticized the current administration for generating revenue at all costs, noting that fuel prices were more affordable during previous administrations, even without functional refineries. He argued that the current price hikes are unsustainable for ordinary citizens.

– Augustine Oyiwona attributed the increases to factors such as inflation (currently at 33.8%), high crude costs, production and transportation expenses, and poor infrastructure.

– Sylvester Agih expressed disbelief that Nigerians are paying more for petrol now than when the country relied on imports, despite the removal of import-related costs. He also criticized the government for failing to show tangible benefits from subsidy savings.

– Ameh Anthony lamented the paradox of suffering in a resource-rich nation, arguing that functional refineries should lead to lower prices. He highlighted the impact of high fuel costs on businesses and the economy.

– Daniel Mustapha called for a thorough investigation into the causes of persistent price hikes, suggesting that improving refinery efficiency and transparency could stabilize prices.

– Adams Ali urged the federal government to sell crude to local refineries at discounted rates to enable affordable pump prices. He also recommended diversifying revenue sources and addressing inefficiencies in the oil sector.

Conclusion

The persistent rise in fuel prices has amplified economic hardships for Nigerians, sparking widespread calls for urgent government intervention. Suggestions include improving refinery operations, controlling prices, and ensuring that subsidy savings are invested in initiatives that directly benefit citizens. Until these steps are taken, public frustration is likely to persist.

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