The full deregulation of Nigeria's downstream oil sector appears to have taken off, as the Nigerian National Petroleum Company Limited (NNPCL) raised petrol pump prices to N998 per litre in Lagos and N1,030 in Abuja. The adjustment follows NNPCL’s purchase of petrol from Dangote Refinery at N977 per litre, with N21 added to cover costs and taxes. This marks a significant jump from last month's rates of N855 in Lagos and N916 in Abuja.
Despite expectations that the new naira-for-crude policy would lower petrol prices, the Lagos Chamber of Commerce & Industry (LCCI) highlighted that the current product used by Dangote Refinery was bought at international rates. The absence of government subsidies, combined with the rise in international crude prices, has contributed to the price increase. Meanwhile, the Center for the Promotion of Private Enterprise (CPPE) expressed concern about the economic and social implications of the full deregulation.
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The Nigeria Labour Congress (NLC) condemned the price hike, arguing it would deepen poverty and cause job losses. In a statement, NLC President Joe Ajaero criticized the government's focus on increasing petrol prices without implementing adequate economic reforms or support systems. The union called for an immediate reversal of the price increase and demanded a clear economic blueprint from the government.
Many Nigerians had hoped that the naira-for-crude directive, issued by President Bola Tinubu, would provide some relief at the pump. However, the NNPCL stated that price reductions would only occur when Dangote Refinery lowers its selling price. As debates over the hike continue, citizens are left grappling with the rising cost of living.
