Petrol landing cost in Nigeria soars 46.8% to N1,026.71/liter amid subsidy confusion, sparking outrage over economic hardship.
The landing cost of petrol in Nigeria has skyrocketed by 46.8% year-on-year to N1,026.71 per liter in May 2024, up from N545.83 in the same period last year. This increase, which excludes additional costs like depot charges and marketers' margins, brings the total delivery cost at filling stations to nearly N1,052.39 per liter. Despite the government's claims of scrapping fuel subsidies, the Nigerian National Petroleum Company Limited (NNPCL) remains the sole importer, sparking concerns about the transparency of the pricing regime.
The sharp rise in petrol costs has been attributed to factors such as foreign exchange scarcity, depreciating naira, and increased crude oil prices globally. This has made it unprofitable for marketers to import fuel at the current regulated pump prices, leaving the NNPCL as the sole supplier. Consequently, Nigerians are grappling with soaring transportation costs, leading to a ripple effect on goods and services across the country.
The National Bureau of Statistics (NBS) reported a staggering 176.02% year-on-year increase in the national average retail price of petrol, reaching N701.24 per liter in April 2024, compared to N254.06 in the corresponding period of 2023. Experts estimate that Nigeria is currently paying around N1 trillion monthly as a petrol subsidy, despite the government's claims of removing subsidies.
The International Monetary Fund (IMF) has advised the Tinubu administration to completely stop petrol subsidies, stating that the government has resumed paying subsidies through the backdoor by capping fuel prices at retail stations.
The news has sparked outrage among Nigerians, with many accusing the government of deception and worsening the economic hardship faced by citizens. "Subsidy is alive," one Nigerian commented, while another stated, "This Tinubu just came to make things worse for Nigerians.
Some argued, "Smoke and mirrors. The FG indirectly subsidizes by allowing NNPCL to utilize forex at ridiculous rates. NNPCL is a cash cow for the politicians. No accountability, no control, no checks, no balances."
