Fuel queues resurface over petrol price hike

Fuel queues have resurfaced across Lagos State following an increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL) and other marketers.

Many filling stations, including those along Ikorodu Road, Ikeja, and Bariga areas of Lagos have temporarily closed due to the price hike.

It was gathered that petrol pump prices at NNPCL stations had risen to N998 per litre, while other marketers were charging more.

Northwest filling stations are now selling at N1,000, Hyden Petroleum at N1,100, and NIPCO at N1,050.

This marks the third price increase in two months, following the start of petrol purchases from the Dangote refinery in Lagos.

NNPCL raised petrol price from N855 per litre to N998 in Lagos, with the price of the product reaching N1,003 in the North-Eastern states.

On September 3, the fuel price rose from N568 in Lagos, the lowest at that time, and N617 in other regions to a minimum of N855.

Speaking on the development, an energy lawyer, Dr Ayodele Oni, suggested that the government could foster competition by promoting the establishment of modular refineries and revamping existing national facilities.

Again, NNPCL increases petrol price

Oni, also a partner at Bloomfield Law Practice, said increased competition among refiners could lead to better prices for consumers.

To stabilise exchange rate fluctuations, Oni recommended that the government partially defend the naira with foreign exchange in the short term.

For the long term, he called for policies that encourage exports and foreign direct investment to boost dollar inflows.

Oni also advised diversifying the economy into manufacturing and agriculture to reduce import costs.

He proposed exploring alternative fuel sources such as Compressed Natural Gas (CNG) and suggested that citizens take advantage of government incentives for CNG vehicle conversion.

Oni, therefore, urged the government to introduce mass transit systems to reduce the impact of fuel price fluctuations on Nigerians.

The lawyer attributed the recent price increases largely to the rising dollar exchange rate against the naira, as the petroleum sector operates in a dollarised market.

He expressed hope that the crude-for-naira arrangement between NNPCL and the Dangote refinery would help stabilise the naira against the dollar and alleviate pricing pressures.

The Star