NNPC raises petrol price, deepening hardship for Nigerians under Tinubu

The Nigerian National Petroleum Corporation (NNPC) Ltd. has raised the price of petrol from N617 to N855 per litre, a move that will intensify the economic hardship faced by Nigerians under President Bola Tinubu’s administration.

The price hike comes two days after NNPC cited “financial strain” and “significant debt” to suppliers as reasons for prolonged disruptions in fuel supply, which many had interpreted as a prelude to an increase in pump prices.

While there has been no official announcement from NNPC, the new price of N855 per liter was displayed at NNPC filling stations on Tuesday, confirming what many Nigerians had feared.

There were reports that some NNPC stations sold petrol for as high as N897 a litre.

The sudden increase has only exacerbated the frustration of citizens already grappling with a prolonged fuel shortage and high prices despite the government’s removal of the import cost subsidy over a year ago, a move it had claimed would stabilize the market.

The government’s twin policies of subsidy removal and devaluation of the naira sparked an unprecedented economic crisis that has left millions unable to feed. Annual inflation rose to 34.2% in June, from 25.8% last August.

Learn More

The latest price adjustment has reignited criticism of NNPC’s operations, particularly regarding its transparency and management of resources. Despite Nigeria being one of the world’s major oil producers, the country continues to rely heavily on imported fuel due to its inability to refine crude oil domestically.

The Port Harcourt refinery remains non-functional even after a $1.5 billion rehabilitation project by NNPC, raising questions about the corporation’s management of public funds.

Moreover, there have been allegations that NNPC refused to supply crude oil to the privately owned Dangote Refinery for domestic fuel production, although the company has denied this claim.

These controversies add to the growing skepticism about NNPC’s handling of its financials, especially given that it recently announced a record profit of N3.3 trillion for 2023, only to now claim significant financial strain.

The latest price hike comes at a time when Nigerians are increasingly demanding accountability. Many are asking why, despite the massive profits reported by NNPC and its role as the sole importer of petrol, the country is facing such severe fuel shortages and high prices.

“This is September; our refineries are still unproductive. Where is the refined oil that is produced by our local refineries? Where is the record profit you posted? Where is the Dangote supply? Are you paying a subsidy?” posted Faisal Kurfi on X, formerly Twitter, reflecting the sentiments of many frustrated citizens.

NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, has reiterated the company’s commitment to maintaining a consistent supply of petroleum products nationwide in line with the Petroleum Industry Act (PIA).

However, with the recent price increase and no clear strategy to alleviate the financial burden on Nigerians, the NNPC’s actions have only deepened the economic woes of President Tinubu’s administration.