Fuel prices may rise by 300% over cost variation

• NNPC denies slashing petrol price to N488

Fuel prices in Nigeria may rise by as much as 300 per cent in certain states in line with the removal of fuel subsidies, reflecting the variability in costs across the country compared to the same period in 2023.  
   

This prediction was made known in the Society of Energy Editors (SEE) 2024 Third Quarter Outlook for Nigeria’s Energy Sector (July and September 2024). The report stated that petroleum subsidies remain a significant burden and strain on government finances.
   
“With fuel sold at different prices across the country in line with subsidy removal, price hike could hit 300 per cent in some states compared to the same time in 2023,” it stated.
   
It added that the country’s reliance on fuel imports is projected to remain high in the foreseeable future, continuing to exert significant pressure on the country’s foreign exchange reserves.
 
The high cost of importing petroleum products strains the country’s financial resources, impacting the stability of the naira and overall economy.
 

The high levels of fuel imports are attributed to several factors, including underperforming domestic refineries, delays in the full operationalisation of new refining projects, and the increasing domestic demand for fuel. The report further stated that refineries would operate at limited capacity due to unending maintenance and upgrades.
 
“This outlook highlights the key trends and challenges expected in Nigeria’s energy sector during the third quarter of 2024. The sector is expected to experience growth and development, but also faces significant challenges that need to be addressed to ensure sustainable progress,” it stated.

MEANWHILE, the Nigerian National Petroleum Company (NNPC) Limited has denied that it has adjusted its fuel price template. The Chief Corporate Communication Officer, NNPC Ltd, Olufemi Soneye, yesterday said the insinuation of fuel price adjustment was ‘fake news.’  
   
He stated that NNPC Ltd would have announced to the public if there was a price adjustment. A report had gone viral that NNPC Ltd had ordered all oil marketers to adjust the retail price for premium motor spirit (PMS) to a range between N488 to N557 per litre across Nigeria.
   

The report further read: “The order came to marketers on Wednesday, citing Management approval of the upward review of NNPC petrol pump price table for mega, standard and leased filling stations.
   
“Against this backdrop, a new table containing the retail prices for the different geopolitical zones in the country is set to be implemented by retail managers with immediate effect.
 
“The new price schedule reveals that petrol will be sold at the highest prices in Maiduguri and Damaturu at N557 per litre and N550 per litre in the rest of the Northern Zone of Nigeria.
   
“It also shows that consumers in the South-East will buy at an average of N520 per litre, while the South-South Zone will get the product at N511 per litre, except in Uyo, where petrol will now be sold at N515 per litre.
   
“According to the list, the South-West Zone of the country will get the product at N500 per litre, except for consumers in Lagos, who will buy at N488 per litre.”