Petrol Prices Hit N700 per Litre Ahead of Christmas in Nigeria
Petrol prices in Nigeria are experiencing a silent surge, reaching between N660 to N700 per litre across several states, as the yuletide season approaches, according to a recent review by Nairametrics on Monday, December 18. This increase is not merely a festive season phenomenon but is closely tied to the recent removal of fuel subsidies, rendering petrol prices more responsive to market dynamics.
One of the significant contributing factors to this surge is the prevailing foreign exchange crisis in the country. This crisis has presented considerable challenges for independent fuel marketers, making it increasingly difficult for them to import petroleum products independently. Consequently, these marketers are now heavily reliant on the Nigerian National Petroleum Company Limited (NNPCL) to distribute fuel nationwide.
Despite assurances from the NNPCL about ample stock availability for the Christmas season, fuel marketers find themselves compelled to raise pump prices to accommodate the rising costs associated with fuel distribution.
Logistical challenges and regional disparities in fuel distribution contribute to the varying costs observed across different states. Nairametrics reported petrol pump prices ranging from N550 to N620 per litre in Lagos State, N670 per litre in Jos, Plateau State, N680 per litre in Uromi, Edo State, and N670 to N700 per litre in Maiduguri, Borno State, among other variations.
As Christmas Day approaches, there is a likelihood that petrol pump prices may continue to fluctuate. A businessman in Kano state reported purchasing petrol at N650 per litre on December 17, only to witness a price increase within 24 hours.
The World Bank’s recent Nigeria Development Update report, released on December 13, 2023, suggested cost-reflective pricing on petrol following the removal of subsidies. However, the report also noted a discrepancy in Nigeria’s petrol pricing, indicating a potential partial reinstatement of the subsidy. This raises concerns about the sustainability of uniform petrol pricing across the country post-subsidy removal.
Source: Nairametrics
