Petrol Prices Hit N700, N650 Per Litre in Sokoto, Gombe, Others as Marketers Insist Subsidy is Back

• In some parts of Nigeria, marketers adjusted their pumps and sold petrol for between N650 and N700 per litre
• The marketers attributed the move to the high cost of diesel used in trucking the product to various filling stations across the country
• The development comes after the NNPC denied claims that the federal government had restored subsidy on petrol

Petrol price has increased in parts of Nigeria after marketers adjusted their pumps to reflect the new price on Tuesday, October 10, 2023.

The development comes amid the rising cost of diesel, which has disrupted the distribution of petroleum products across Nigeria.

Marketers blame the high cost of diesel for the increase in petrol price

Due to infrastructure deficits and inadequate facilities in some parts of Northern Nigeria, marketers depend on transporting products to their stations from long distances. The trucks run on diesel.

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According to reports by Leadership, queues emerged in Abuja while the black market boomed, selling petrol at N625 per litre.

Chinedu Okoronkwo, President of the Independent Petroleum Marketers Association (IPMAN), blamed the problem on the high cost of diesel.

Okoronkwo said he observed minor adjustments by marketers in some parts of the country. He added that the adjustment covers operational costs as marketers pay more now to freight their products to various stations.

He explained that the adjustment was to enable the marketers cope with the increase in the price of diesel rather than shutting down.

On Tuesday, October 10, 2023, depot owners sold diesel to marketers for N900 and N970 per litre, while outlets dispensed the product for N1,000 and N1,100.

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Many marketers say they know the government's decision to remove Value Added Tax (VAT) from diesel but stated that it barely affected the product's price.

However, there has been confusion on the return of subsidy, with the Nigerian National Petroleum Company (NNPC) insisting that the country has not reverted to subsidy.

Northern states battle high-cost petrol

Oil marketers confirmed that the Nigerian government had restored the subsidy on petrol.

A recent report by Legit.ng revealed that the NNPC paid about N169 billion for subsidy in August from the proceeds of dividends from NLNG.

Queues surfaced in petrol stations in parts of Sokoto due to sudden scarcity, and an increase in the price of the product is above the approved price.

Petrol stations reportedly owned by Independent marketers sold the product between N680 and N700 per liter, above the official price.

In Gombe State, petrol prices increased to N650 per litre in private filling stations as NNPC stations remained shut.

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In other states like Kebbi, petrol is sold for about N615 per litre as few stations sell the product.

The Kebbi State government reportedly summoned the IPMAN officials for a meeting to resolve the high cost of the product in the state.

In Delta State, prominent marketers like NNPC sold petrol at N600 and N650 per litre.

Marketers counter NNPC, insist subsidy is back

Punch reports that oil marketers countered the federal government, insisting that petrol prices should not be less than N800 per litre if there were no subsidy return on the product.

Currently, petrol price is pegged at N580 and N615 per litre depending on the area.

Mele Kyari, Group Chief Executive Officer of NNPC, revealed on Monday, October 9, 2023, that the light queues experienced at petrol stations nationwide were due to hiccups in product distribution from the South to the North.

Marketers had insisted that the landing cost of the product increased to N720 per litre last week, which might have led to the scarcity.

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In an exclusive chat, energy Policy analyst and Team Leader of Platforms Africa, Adeola Yusuf, told Legit.ng that Nigerians should brace for a shocker in the coming months.

Yusuf stated that the rising price of crude oil in the international markets makes it mandatory for the Nigerian government to increase petrol prices.

Yusuf said:

"The country is not earning dollars from other sources except oil, which will impact the commodity's price at home. Nigerians should not expect a free meal every time. Sooner than later, petrol prices will skyrocket.

"Nigeria is exporting anything other than crude oil, so the country earns limited FX, and no way could be used solely for petrol imports. There are other issues to tackle, like FX backlogs and so on."

President Tinubu speaks on fuel subsidy return

Legit.ng had reported that the President Bola Tinubu-led government has debunked the report that his administration has returned subsidies on the premium motor spirit (PMS), also known as petrol.

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"N720/Litre NNPC debunks report of petrol price increases as landing costs rise

On May 29, Tinubu declared the removal of fuel subsidies during his inauguration at Eagles Square in Abuja.

However, the president's declaration has been confronted with major economic repercussions. Organized labour has staged a series of protests against the fuel subsidy removal.

Source: Legit.ng