Fuel Queues Resurface In Lagos As Petrol Prices Rise

Posted by African Examiner Business News, Featured, Latest Headlines Wednesday, October 9th, 2024

(AFRICAN EXAMINER) – Fuel queues have resurfaced across Lagos following an increase in petrol prices by the Nigerian National Petroleum Company Ltd.
(NNPC) and other marketers.

The News Agency of Nigeria (NAN) reports that many filling stations, including those along Ikorodu Road, Ikeja and Bariga, have temporarily closed due to the price hike.

NAN correspondent who monitored the situation reports that pump price at NNPCL stations had risen to N998 per liter, while other marketers were charging even 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 Oil Refinery on the outskirts of Lagos.

NNPC Ltd. has raised petrol prices from N855 per liter to N998 in Lagos, with prices reaching N1,003 in North-Eastern states.

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

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

Oni, also a partner at Bloomfield Law Practice, said that 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 the populace.

According to him, Nigeria is now operating under a deregulated regime, where prices are influenced by market forces, including exchange rates.

He 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 NNPC and the Dangote Refinery would help stabilise the Naira against the dollar and alleviate pricing pressures. (NAN)