Nationwide chaos erupts as fuel price surge cripples transport, triggers soaring fares
.Commuters stranded, businesses disrupted as soaring petrol price worsens economy
BY MOTOLAN OSENI
A fresh wave of panic gripped commuters across Lagos State, Ogun State, and many other states across the country on Wednesday, as a sudden hike in petrol price caused transport fares to soar, leaving many stranded at bus terminals.
This is even as commercial buses queued at petrol stations to purchase the increasingly scarce commodity, petrol prices spiked sharply, sparking chaos in daily transportation.
The Nigerian National Petroleum Company Limited (NNPCL) announced yet another price increase, raising the pump price from N855 to as high as N998 per litre in Lagos, with Abuja prices crossing the N1, 000 threshold.
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It is, however, worthy of note that this is the second increase in just 24 days, following the NNPCL’s decision to cease its middleman role at the Dangote Refinery.
In our fact findings, The Daily Times team who visited some patrol stations in Lagos State discovered that North-West Filling Station in Maryland had its petrol prices at N999, while other stations around Ikeja were selling at rates between N885 and N998 per litre.
For instance, at NNPC Ojota, where long queues caused roadblocks, prices climbed to N998, with many motorists frantically trying to purchase fuel before the next hike.
“If we don’t buy today, we might see prices cross N1, 000 by tomorrow. This is why we’re struggling to buy now,” lamented a motorist, Mr. Shereefsen Adisa.
On the Lagos-Ibadan expressway, most petrol stations were either closed or selling at varied rates. Nipco priced petrol at N1, 050 per litre, while Rainoil and Rabade stations demanded N1,120 per litre.
In other parts of Lagos, prices continued to soar, with AP Fuel Station at Oba-Akran selling at N897 per litre, while MRS and Conoil hit the N1,000 mark.
Industry experts, who commented on this development, have condemned the price hike as poorly timed and harmful to Nigeria’s already struggling economy.
The Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, criticised the move, saying: “This increase disregards the current economic hardship. There is a critical need for policies that balance economic, social, and political considerations.”
He emphasised the necessity for stronger safety nets to protect the vulnerable, noting that Nigeria’s economy is not yet ready for full deregulation.
Yusuf also urged the government to cut import duties on industrial raw materials and essential goods to ease the burden on businesses and citizens. He advocated for a maximum customs duty exchange rate of N1,000 to the dollar to reduce the current high cost of imports.
Wednesday’s hike reflects a 12.7 per cent increase from the previous price, with many stakeholders attributing the surge to the NNPCL’s decision to terminate its exclusive purchase agreement with the Dangote Refinery. This shift allows marketers to negotiate prices directly with the refinery, paving the way for a fully deregulated pricing system where refineries sell on a willing-buyer, willing-seller basis.
At the 2024 National Conference of the Association of Energy Correspondents (NAEC), industry leaders voiced their concerns about Nigeria’s fiscal policies, which they argued have made petroleum product pricing uncompetitive.
Also, the Chief Executive Officer (CEO) of Pinnacle Oil and Gas, Robert Dickerman, highlighted the need for Nigeria to restore global confidence in its economy and currency, stating that bold reforms are required to attract foreign investment and stabilize the oil sector.
Dickerman, also, pointed out that while the Dangote Refinery’s pricing in local currency helps to avoid further dollar outflows, the broader economic landscape remains fraught with challenges.
“Petrol is still being subsidized through discounted FX rates, and we’re seeing prices well below global market levels,” he noted.
As fuel shortages continue and prices spiral out of control, the effects are already rippling across the economy. With transport costs rising and businesses grappling with higher operating expenses, Nigerians are bracing for even tougher times ahead.
