The surge in international crude oil prices has led to concerns of a potential petrol price hike in Nigeria. Crude oil was trading at $93.55 per barrel on Monday, adding to the apprehension.
Despite the depreciation of the Naira in the foreign exchange market, where it reached N980/$1 at the parallel market on Monday, the Independent Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria have sought to allay fears of an imminent petrol price increase.
Over the past three months, Nigeria has witnessed two petrol price increases, following the removal of the fuel subsidy in June. Initially, the pump price surged by 210% to N546.83 per litre from N175 per litre. Less than a month later, it further increased to N617 per litre.
However, President Bola Ahmed Tinubu reassured Nigerians that there would be no further petrol price hikes, a statement confirmed by Ajuri Ngelale, Special Adviser to the President on Media and Publicity.
Nigerian National Petroleum Corporation Limited (NNPC) has been the sole supplier of petrol in Nigeria, except in July when Emadeb Energy imported 27 million litres of fuel. Claims suggest that the Federal Government has indirectly subsidized the commodity to prevent further price increases.
President of IPMAN, Chinedu Okonkwo, emphasized that there is currently no reason for alarm regarding fuel price increases. He noted that NNPC is the exclusive supplier of petrol in the country and has not indicated any plans for a price hike. Okonkwo urged the government to expedite the implementation of Compressed Natural Gas as an alternative to petrol.
Tunji Oyebanji, a former Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), explained that Nigeria operates in a unique fuel-deregulated market where NNPC sets the price as the sole supplier. As long as NNPC remains the sole importer and supplier, the petrol price is likely to remain unchanged for the benefit of Nigerians.
Oyebanji further noted that the situation could change if other fuel importers enter the market.
Overall, while the rise in international crude oil prices has raised concerns, reassurances from government officials and industry experts suggest that a petrol price hike may not be imminent as long as NNPC continues to dominate the supply chain.
