By Ayomide Otitoju
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the recent spike in the price of premium motor spirit (fuel) to the full implementation of deregulation in the petroleum sector.
Speaking on Channels Television’s Sunrise Daily on Tuesday, IPMAN President Abubakar Garima explained that the price adjustment should not be seen as an increase but as part of the deregulation process, which began after the removal of fuel subsidies earlier this year.
“Well, we know now that we cannot call it an increase but rather we can call it the removal of subsidy—deregulation. Now, deregulation has started taking place fully,” Garima said.
Retail outlets of the Nigerian National Petroleum Company Limited (NNPCL) have revised the price of fuel at their stations, with a litre now selling for ₦998 in Lagos, up from ₦855, and ₦1,030 in Abuja, from ₦897.
This price shift follows President Bola Tinubu’s declaration in May 2023, announcing the end of the subsidy regime, which he declared “gone” during his inauguration. Before the subsidy removal, a litre of fuel was priced at about ₦200 across the country, but prices have continuously surged since then.
The removal of the fuel subsidy and the floating of the naira have led to significant increases in the cost of living, with many Nigerians struggling to afford basic commodities. Long queues at filling stations have also persisted despite the price hikes, reflecting ongoing supply issues.
However, Garima remains optimistic, saying that the deregulation will eventually lead to increased availability of the product. “The change that Nigerians are going to expect now is, one, availability since there is no subsidy. The NNPC is not the sole importer. Other marketers too will participate,” he explained, adding that private marketers will also start sourcing fuel directly from the Dangote Refinery.
Despite this assurance, the latest price adjustmen occurring just a month after the previous hike has sparked public outrage. The Nigeria Labour Congress (NLC) has expressed its dismay, calling for an immediate reversal of the pump price hike. The union argued that the increase will further “deepen poverty as production capacities dip.”
“In light of this, we urge the government to immediately reverse this rate hike as previous increases did not produce any good results. People only got poorer,” the NLC said in a statement.
While protests have erupted over the rising cost of living, President Tinubu has repeatedly urged Nigerians to be patient, assuring them that his reforms will eventually yield positive results despite the hardships many are currently facing.
