Filling stations in Nigeria, particularly those operated by independent marketers, have begun to dispense Premium Motor Spirit (petrol) at prices that exceed the price bands approved by the Federal Government. Some filling stations in the North are reportedly selling petrol for as high as N685 per liter.
In July, the pump price of petrol was increased from approximately N537 to N550 per liter to N617 per liter at filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) in Abuja and many states in the North. In other regions, including Lagos, South-West states, and the South-South, petrol prices also experienced significant increases.
It was previously confirmed by oil marketers that shifts in prices at NNPCL stations signaled an approved price increase by the Federal Government since the NNPCL, as a national oil company, is a major importer of petrol. The NNPCL is currently the sole importer of petrol in Nigeria, as other marketers have ceased importing the commodity due to difficulties in accessing the required US dollars for fuel imports.
The Independent Petroleum Marketers Association of Nigeria in Abuja-Suleja indicated that the price of petrol at NNPCL stations is considered the approved government price, and when the NNPCL raises its price, other marketers adjust their prices accordingly.
The removal of petrol subsidies in May, as announced by President Bola Tinubu during his inaugural address on May 29, led to a surge in petrol prices from N198 per liter to over N500 per liter on May 30, 2023.
However, it was observed that instead of selling petrol within the approved bands (around N580 per liter in the South and N617 per liter in the North), some dealers were selling petrol for as high as N685 per liter, particularly in states in the North like Sokoto and Taraba.
In Abuja, independent dealers raised their pump prices to as much as N630 per liter, and black market vendors were reportedly selling petrol in jerrycans for about N850 per liter.
Filling stations in Lagos, including those owned by NNPCL, experienced closures on Sunday, with prices ranging between N600 and N620 per liter at independent marketer outlets. Major Oil Marketers Association of Nigeria retail outlets still sold within the NNPCL retail price of N585 per liter.
In Sokoto, the cost of petrol at independent marketer stations was between N680 and N685 per liter, while NNPCL stations sold petrol for between N615 and N620 per liter.
Petrol prices in Delta State, particularly in Asaba and its environs, ranged between N615 per liter and N650 per liter, with some major marketers selling at N615 per liter and others selling for N620 to N650 per liter.
Benue State observed petrol prices of between N630 and N635 per liter, with the cost varying by location. Operators in the state, which declined to speak about the reason for the recurrent price hikes, sold at rates as high as N700 to N1000 per liter in rural areas.
Petrol was sold at rates between N620 and N650 per liter in Bayelsa State, with prices varying at different filling stations in Yenagoa and its surroundings. NNPCL mega filling stations and some sales outlets maintained the approved price of N595 per liter.
In Katsina State, petrol stations closed their gates on Sunday, with those open for business selling petrol at N640 per liter. Independent marketers in Sokoto continued to sell petrol at N680 to N685 per liter.
Operators in Enugu State, especially in stations owned by independent marketers, sold petrol at rates between N625 and N630 per liter, while major marketers still maintained N620 per liter.
Niger State observed petrol prices between N619 and N625 per liter, while in Kano, the product was sold at rates between N640 and N660 per liter.
