JUST IN: Fuel Prices Begin To Drop Amid Deregulation

As of November 19, 2024, Nigerians are feeling the impact of a recent fuel price hike by the Nigerian National Petroleum Company (NNPC). However, there are signs of some relief.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has pointed out that the deregulation of the country’s oil sector is starting to drive down petrol prices. This is mainly due to increased competition among oil marketers.

In just 42 days, over 2 billion liters of Premium Motor Spirit (PMS) have been imported by NNPC and other companies.

This has helped ease some of the pressure on fuel supply. Additionally, a partnership between IPMAN and Dangote Petroleum Refinery has contributed to lower prices.

The refinery has agreed to supply IPMAN with 60 million liters of petrol every week, which totals 240 million liters a month. This deal is expected to help meet demand and further reduce fuel costs.

The Dangote refinery, based in Lekki, is also working on raising funds to increase its crude oil imports and expand its production capacity, which could further improve supply.

Deregulation has played a key role in intensifying competition, which is helping to bring down prices.

However, the rising cost of fuel, electricity, and the floating of the naira have sparked concerns. The National Union of Shop and Distributive Employees (NUSDE) recently criticized these policies.

Their president, Aminu Megbontowon, highlighted that the cost of petrol has now exceeded N1,000 per liter, and electricity tariffs have surged from N68 to N227.

He argued that these costs are unsustainable, especially in an oil-producing country like Nigeria, where many citizens already struggle with low purchasing power.

Labor unions are calling on President Bola Tinubu to reconsider these policies due to the growing economic strain on ordinary Nigerians.