Expectedly, the Nigeria Labour Congress (NLC) has condemned the federal government’s increase in the pump price of Premium Motor Spirit (PMS), describing it as a betrayal of trust.

This development followed reports of fuel being sold above N1,000 at petrol stations across Nigeria from yesterday.

In a statement by NLC President Joe Ajaero, in Abuja, Labour expressed shock and disappointment at the government’s decision, which it claimed was made without prior consultation or notice.

It was gathered that during negotiations for the new national minimum wage, one condition for accepting the proposed N70,000 was the government’s commitment to maintain the existing fuel prices.

Labour lamented feeling a deep sense of betrayal as the federal government clandestinely increased the pump price of PMS.

Ajaero stated that one of the reasons for accepting N70,000 as the national minimum wage was the understanding that the pump price of PMS would not be increased, even though they knew that N70,000 was insufficient.

According to Labour, the federal government offered the option of a higher minimum wage of N250,000 with a pump price of PMS between N1,500 and N2,000 or a lower minimum wage of N70,000 with the old fuel rates, and that organised labour opted for the latter, unwilling to burden Nigerians with further economic strain.

Labour lamented that the government has violated this understanding, even when the reduced new minimum wage is yet to be implemented. Amid ongoing fuel scarcity, the increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPC) from N617 to N897 per litre at its retail outlets in Abuja, N855 in Lagos, and over N1000 in other parts of the country had caused a lot of misgiving among Nigerians.

Nigerians woke up yesterday to these changes in petrol pump prices. A directive from the NNPC Retail management indicated approval for an upward review of PMS pump prices across the country.

“This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/litre to N897/litre, effective today, September 3, 2024. Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/litre,” the message read.

Checks reveal that many NNPC filling stations in Abuja had already implemented the new prices, with downstream facilities selling at N897. At an independent filling station along Jikwoyi Road in Abuja, the commodity was sold at N960 per litre. Our correspondents went round filling stations. In Ado Ekiti, NNPC Mega Station petrol was sold at N855, Rein Oil at N930, Matrix at N935, and Bovas at N935, while others sold between N1000 and N1200 per litre.

In Borno State capital.Maiduguri, petrol at Kime Petrol Limited was N1000, Ajus Oil Ltd.’s pump price was N970, Ngarzema Petrol Station’s was N975, and Bamus Investment’s was N950. Both A. A Rano at Club Road and Danmarna Filling Station at Gwagwarwa by Airport Road in Kano sold a litre of petrol for N950. It is sold at N980 at Rainoil Filling Station along Aba Road in Umuahia, the Abia State capital.

Petroleum was being dispensed at N950 at the Famab—Agoro Filling Station, Sobi Specialist Hospital Road, Alagbado, Ilorin, Kwara State.

In Delta State, specifically Asaba, Rain Oil Petrol Station sold fuel at N950 per litre. In Zamfara State, fuel was sold at different prices: Rikiji Filling Station at N950, Danmarna Filling Station at N890, and Danmaikyau Filling Station at N930. NNPCL in Ibadan sold at N865 per litre. Total was sold at N1000 per litre, Martum Filling Station Apete sold at N950 per litre, and Gmas Petrol Station Apete at N950 per litre.

In Enugu, MOOB Filling Station, opposite St. Patrick’s Cathedral Parish, Awka, along Zik’s Avenue,  sold fuel  at N950 per litre yesterday.

Abu Kure and Imani fuel stations on Gusau Road, Sokoto State, sold fuel at N1000 and N1200, respectively. Fuel is sold at N980 per litre at EMSA Filling Station, Aka Road, Uyo, Akwa Ibom State.

In Kaduna, AA Rano sold at N950 per litre, Sharon at N920 per litre, while black market sales reached N1500 per litre.

In Rivers, NNPCL sold at N884 per litre, Oando at N970 per litre, and the black market sold at N1000 per litre.

In Rivers, NNPCL sold at N884 per litre, Oando at N970 per litre, and the black market sold at N1000 per litre.

In Imo State, fuel stations such as BGR and Cocean on Orlu Road dispensed the product at N950 per litre.

The product sold for more or less the above prices in Kebbi, Plateau, Gombe, Niger, and Adamawa states.

However, the NNPC spokesperson, Olufemi Soneye, declined to comment when our correspondent contacted us.

The NNPC attributed the shortages and price increases to significant debts owed to suppliers and ongoing operational difficulties at the country’s four non-functional refineries.

As queues grow longer at filling stations, stakeholders warn that further price hikes could deepen the economic hardship faced by many Nigerians, pushing them closer to breaking point.

The price hike comes as Nigerians are already grappling with high inflation, currently at its highest level in 28 years, and a weakening economy. The increase in petrol prices is likely to lead to a sharp rise in the cost of basic food items and transportation, further straining household budgets.

Many Nigerians have expressed frustration with the current situation.

The NNPC, the sole importer of petrol into Nigeria, had attributed the price increase to financial strain caused by the high cost of importing the commodity. The company has acknowledged significant debts owed to petrol suppliers, which has placed considerable pressure on its operations.

Despite the government’s efforts to remove subsidy and allow private firms to import petrol, the NNPC remains the sole importer due to foreign currency shortages and a cap on the price of petrol. Some outlets have taken advantage of the situation to maximize profits, further exacerbating the crisis. As the cost of living continues to rise, many Nigerians are calling for urgent action from the government to address the ongoing petrol crisis and its impact on the economy.

Experts have called on the government to roll out incentives to alleviate the suffering caused by the fuel price hike. The experts, who spoke in various interviews with LEADERSHIP yesterday, also urged the government to increase its support for the adoption of renewable energy in the country.

An impeccable industry source told our correspondent that the NNPCL is about to raise the ex-depot price to N850 per litre, which will force independent retailers to sell at above N900 to N1,000 per litre, considering other costs. This adjustment is connected to the NNPC’s disclosure that petrol importation has caused financial strain and poses a threat to the sustainability of the fuel supply.

Dr. Muda Yusuf, director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), said, “The reality is that this is a very difficult situation for the government and the NNPC. I hope that as citizens, we should show some understanding at this time. If the situation improves, the price may be further moderated.”

On his part, the group executive chairman of Lancelot Group, Mr. Adebayo Adeleke, noted that the fraud characterizing NNPC operations has fully matured. “Why were they fighting Dangote over the refinery? They know that one man’s success will demystify them. What do you do when you owe? You pay up. They should pay.”

Similarly, David Adonri, vice president of Highcap Securities Limited, expressed concern over whether the new PMS price is market-determined.

“NNPC has a monopoly over the supply of PMS. An abuse of monopoly power may be what we are currently witnessing,” he said.

“Several things have already gone wrong, which signals a rollback on market reforms. Whenever prices increase astronomically, it fuels galloping inflation. The drive by NNPC to hike fuel prices may be responsible for the current excruciating fuel scarcity. Some people also think that the measure is geared towards preparing the market for the entry of Dangote’s PMS at international prices.”

FG Denies Ordering NNPC To Increase Petrol Prices

Meanwhile, the federal government has addressed reports circulating on social media, claiming that the minister of state for petroleum resources, Heineken Lokpobiri, directed the Nigerian National Petroleum Company Limited (NNPC) to inflate petroleum prices to N1000 per litre above the approved pump price.

The federal government, in a statement signed by the special adviser to the minister, Nneamaka Okafor, said the report was concocted and ill-conceived to sow discord and confusion in the oil industry.

“There was never a time the federal government interfered with petroleum pricing at NNPC, let alone give directives for price increment. The federal government is compelled to address the outright falsehoods currently being circulated on social media, which claim that the minister of petroleum resources, Senator Heineken Lokpobiri, directed the Nigerian National Petroleum Company Limited (NNPCL) to inflate petroleum prices above the approved pump price.”

“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent.”

“We challenge anyone in possession of any evidence—be it written documents, audio, or video recordings—that supports these fabrications to make it public. Such a claim is entirely untrue and should be recognised as an intentional effort to mislead the public.”