Fuel pump prices increased to over N600 per litre on Tuesday, July 18 across Nigeria.
The increases were not uniform as some states were reportedly selling for N620, while others sold for N640 per litre.
However, stations under the Nigerian National Petroleum Company Limited (NNPCL) sold for N617 per litre.
This is a shocking upgrade from the N537/N540 per litre fuel, which was sold barely 72 hours ago.
Nairametrics reported that the increase in fuel pump prices was a result of the increase in Brent crude prices which crossed the $80 per barrel mark last week for the first time since May 2023.
The increase in international crude prices will always affect Nigeria’s fuel pump price because the country is yet to have crude refining capacity on a large scale, enough to stop the importation of refined petroleum products.
Speaking to Nairametrics on Tuesday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said that it was inevitable that from the third week of July when new fuel imports are brought in, fuel pump prices will increase based on higher crude prices in the international market.
Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), made it known on Tuesday at the State House, that the marketers are incurring more expenses due to international price vagaries and as such the local fuel pump price must be cost-reflective, which is ultimately determined by market forces.
However, this fact does not stop Nigerians from feeling the heat regarding the abrupt increase.
It is important to see how fuel pump prices have increased in the last year.
Note also that fuel pump prices have never been uniform across the country, which is due to added transportation costs between depots and retail stations and the fees payable by distributors to state and local governments.
- In July 2022, Nigerians bought fuel between the average price ranges of N165 to N185 per litre.
- By October 2022, Nigerians were paying between N148 to N178 per litre.
- Meanwhile, in December 2022, people paid between N148 and N206 per litre for fuel.
- By January 2023, the prices ranged between N165 to N185 per litre.
- After President Bola Ahmed Tinubu was sworn into office and declared an end to fuel subsidies, the pump price jumped from N195 to N4888 per litre in Lagos, N540 per litre in Abuja and up to N570 in some Northern states.
- As of Tuesday, July 18, prices shot up again to over N600 per litre across the country, with the North projected to pay up to N670 or N680 per litre.
Given the fact that Nigerians are struggling with rising food prices and transportation costs which are not even factored into the 22.79% inflation rate, it seems more cost troubles await Nigerians who are still living on a N30,000 minimum wage.