With deregulation, petrol sells at different prices across cities, filling stations

The full deregulation of the petrol sector has seen Nigerians buy the product at unprecedented high prices with the prices also varying across cities and across filling stations.

The increased price of petrol has been blamed as the major reason for the cost-of-living crisis in the country.

Apart from the increased prices, the total deregulation also means that prices vary across cities and even based on the ownership of filling stations.

Prior to the commencement of the Petroleum Industry Act and its implementation, the Nigerian government heavily subsidised petrol and, through its Petroleum Equalisation Fund, tried to ensure that the prices did not vary across states

However, the partial deregulation under the last administration of President Muhammadu Buhari removed the equalisation fund while the total deregulation by the President Bola Tinubu administration led to the highest prices Nigerians have ever paid for the product.

Prices are at their all-time high, less than two years after President Bola Tinubu announced an end to petrol subsidy. This sent the cost of petrol skyrocketing – from N190 in May 2023 to over N700 a litre. It is over N1,100 a litre currently, indicating an over 450 per cent increase in 17 months.

Like petrol prices, inflation is also at its all-time high, a direct consequence of subsidy removal – the prices of basic commodities are beyond the reach of ordinary citizens.

For decades, Nigeria has imported petrol as none of the four government-owned refineries is operational, a reason cited for the high cost of petrol.

Nigerians hoped that when operational, the 650,000 barrel-per-day-capacity Dangote Refinery, ranked seventh largest in the world, would bring down the price of petrol.

But the reverse is the case, particularly after the Nigerian National Petroleum Company Limited (NNPCL) ended its sole off-taker role in the new refinery, a development that further increased petrol prices.

NNPC trucks at Dangote refinery awaiting petrol loading (PHOTOS CREDIT: NNPC Ltd)

Petrol price disparities across Nigeria

A PREMIUM TIMES survey of petrol stations across the country between the third and fourth weeks of October confirmed variations in petrol prices across different regions in the country.

The prices vary across different states and are influenced by several factors, including proximity to supply depots, transportation costs, and demand levels.

For instance, in Nigeria’s commercial capital, Lagos, NNPC retail outlets were selling at N998, the lowest price in the country, due to proximity to supply depots. But the same outlets sell at N1,030 per litre in Abuja, the federal capital.

NNPC sold at N1,050 in Nasarawa, N1,060 in Kano, N1,060 in Akwa Ibom, N1,025 in Ogun, and N1,065 in Enugu.

Motorists queuing to buy petrol at NNPCL petrol station in Enugu, Enugu State

The average pump price of a litre of petrol in NNPC filling stations in the country was N1,038.

In Kano, Total Energy sold at N1,130 a litre, but in Uyo, it sold at N1,149. However, for A. A. Rano, the pump price was the same in the two cities – N1,150 a litre.

It is unclear what is responsible for the parity in A. A Rano pump price despite the geo-political location of both cities.

Rain Oil sold at N1,250 a litre in Nasarawa State, N1,200 in Uyo and N1,100 in Ogun State.

Adrova PLC at Wuse Zone 1 Abuja sold at N1,100 per litre, Amasco in Nasarawa State at N1,200, and Alhaji Isa, New Nyanya, at N1,200.

In Akwa Ibom, AP retail outlets in Uyo were selling at N1,145 per litre, while Tran-Sossa and Earthwell outlets sold at N1,240 and N1,250, respectively, at the time of the survey.

In Lagos State, AP and Mobil sold at N1,090 and N1,100, respectively, for the same quantity.

In neighbouring Ogun State, the NNPC outlet in Olowotede sold at N1,025 a litre. In the same area, other retail outlets, including Rain Oil, sold at N1,100 and Rock Oil at N1,200.

In Enugu, south-east Nigeria, a Mobil filling station along Zik Avenue was selling at N1,200. In contrast, Chritin Petroleum Company, located along Obiagu Road in Enugu, sold at N1,220 when a PREMIUM TIMES reporter visited.

Al-Hassan Filling Station in Kano, Kano State

Nigerians groaning over high cost, disparities

The removal of subsidies has caused Nigerians untold hardship.

This is further worsened by the removal of electricity subsidies and the floating of the naira, another policy that has crashed the nation’s currency to a record low against the US dollar.

With petrol prices increasing from N190 in May 2023 to N1,250 in October 2024, many Nigerians have resorted to trekking while car owners use commercial transportation.

“I have since parked my car,” Sunny Udokang, a civil servant in Uyo, Akwa Ibom State, told PREMIUM TIMES on Wednesday.

“How much is my salary that I can afford to buy petrol at N1,250 a litre? No, it is not just realistic to me. I only drive to church on Sundays because I have to go with my family,” he added.

Several other Nigerians have shared similar experiences, expressing concern about the latest increase in petrol prices and irregular supply.

Chinedu Chinex, a commercial driver, told this newspaper at Eterna Plc in the Wuse Zone 1 area of Abuja last Monday that he is sad to see other filling stations inflating the price of petrol.

“I buy a litre of fuel at N1,150. The prices are very high; that’s the issue. At all other stations, there are also queues, as you can see here.

“My car stopped working on the road with passengers inside. The queue won’t help me because it’s too long,” he said.

Another commercial driver, Godspower Orieni, at NNPC Mega Station in Olusegun Obasanjo Way, Central Area Abuja, said he would not blame the independent marketers for hiking their prices because they have to make a profit.

NNPC filling station Central Area Abuja

“To get fuel here, you have to be patient,” he said in a voice conveying frustration. “I think the fact that this is the cheapest in the market and you know that Nigerians will want what is cheaper/ This explains why there is a problem of queues,” he said.

Swelling expenditure but stagnant income

Some Nigerians express frustrations that their income level has not improved to match the expenditures, which have tripled after the removal of the petrol subsidy.

“Living in Mowe, Ogun State, and working in Lekki, Lagos, the increase in petrol price has put a heavy burden on my finances,” Zenith Adewole, said at a petrol station in Ogun State.

“It hasn’t been easy. I spend at least N150,000 on fuel weekly. How much is my salary? Travelling from the Mainland to the Island five days a week has become unbearable,” she said.

Mrs Adewole said workers in her office have been appealing to their CEO to allow them to work from home until the situation improves.

Nigerians want President Tinubu to address the petrol price hike.

“The masses are suffering bitterly,” Mrs Adewole added.

Chritin Filling Station in Enugu, Enugu State

For Chika Udeh, a tricycle rider in Enugu, the hike in petrol prices has diminished profits usually made by commercial transporters.

“Sometimes we can close work for the day, and we will be struggling to have enough money to run the family,” Mr Udeh, a father of three, said.

A resident of Enugu, who identified himself simply as David, said the hike pushed up food item prices.

“In Enugu here, we used to get Okpa (a snack) for N100 per one. But since this recent increase in pump price (of petrol), the sellers increased the price to N200, and then N300,” he explained.

“The price of petrol controls everything in the market because everyone uses it in one way or the other to run his or her business.”

Dangote Refinery provided no succour – Commercial Driver

Nigerians had hoped that petrol would become regularly available and affordable when the Dangote Refinery began production. However, the price has continued to rise, increasing their frustration.

Hamzat Abdullah, a civil servant, said the hike in petrol prices had prevented him from buying petrol until last week.

“With the NNPC selling it at N1,030, other filling stations will sell at higher prices because NNPC is meant to subsidise the oil,” he said.

Mr Abdullahi regretted that no the price of petrol has not reduced despite the Dangote Refinery.

“I will even prefer if Dangote Refinery is not functioning. With the refinery, things are just getting worse. There’s no sign of improvement and impact,” he added.

Although the Dangote refinery says it has enough petrol for use by Nigerians, many marketers still import the product, claiming that the imported one is less expensive compared to Dangote’s petrol.

PREMIUM TIMES reported that vessels of imported petrol and aviation were also expected at the ports on Friday.

AP Filling Station, located along Ikot Ekpene Road, Uyo, Akwa Ibom State

Aniedi Akpan, a commercial tricycle operator in Uyo, Akwa Ibom State, lamented that the commencement of the Dangote refinery did not reduce the price of petrol.

“Honestly, I wish Dangote Refinery never existed,” Mr Akpan said. “This is not what they told us. Government told us the price of petrol was high because they were importing it,” he said.

“Why haven’t they reduced the price now that they are buying from Dangote Refinery?”

NNPC offers lower price but ‘bad’ pump – Commercial bus driver

Overall, the survey shows that NNPC retail outlets offer slightly lower prices than other filling stations, the reason car owners spend hours queuing for petrol at their outlets.

However, a commercial driver in Nasarawa State, identified simply as Clement, claimed that the NNPC dispensing pump is “bad”, and their petrol burns faster, unlike others.

Aisha Mustapha, a civil servant who resides in Maraba but works in Abuja, shared a similar sentiment.

“I usually go for cheaper fuel prices at NNPC because they always have fuel compared to other stations where I will have to queue, but I have noticed that my car consumes it faster. I frequently commute between Maraba and Abuja, so sometimes I buy in Abuja too. Sometimes, if I have enough time, I queue to buy the expensive one from other, more reliable stations,” Ms Mustapha said.

However, there is no evidence to prove the claims of Mr Clement and Ms Mustapha.