Nigerians are voicing their frustrations over the persistent high cost of Premium Motor Spirit (PMS), commonly known as petrol, despite the operation of two major refineries in the country: Dangote and Port Harcourt.
The initial surge in fuel prices followed President Bola Ahmed Tinubu's announcement of subsidy removal in May 2023.
The government justified this move by highlighting the unsustainable nature of subsidies, which previously cost over N400 billion monthly. However, the removal led to a significant price increase from N195 to between N448 and N557 per litre, marking a 185.64% rise.
Despite expectations that the operational refineries would alleviate the burden on consumers, the opposite has occurred.
Sylvester Agih, a concerned citizen, remarked, "With the removal of subsidy, what Nigerians are paying is the actual cost of the product. Yet, with our own functioning refineries, we shouldn't be paying as much as N1000 for a liter of fuel."
The situation worsened in June 2023 and again in September 2024, with prices climbing to between N855 and N897 per litre. The Nigerian National Petroleum Company Limited (NNPCL) attributed these hikes to market dynamics and financial pressures, including mounting debts to petrol suppliers.
Ameh Anthony, another respondent, expressed his disappointment, stating, "Imagine, we have two refineries that are functioning. In other words, petrol is supposed to be very cheap for us, but the reverse is the case."
The Dangote Refinery commenced operations amidst hopes for reduced fuel costs.
However, Devakumar Edwin, Vice President at Dangote Industries Limited, clarified that global market forces continue to dictate pricing, thus dampening expectations for lower prices.
Hassan Alowonle, reflecting on past administrations, noted, "The price of the fuel has always been friendly even during the tenure of former President Goodluck Ebele Jonathan. Now, with functional refineries, the price of fuel is sold at the rate of N1,040."
Calls for government intervention are growing louder. Adams Ali urged the federal government to sell crude oil to the refineries at rates that would allow for affordable pump prices, suggesting, "If Mr. President wants us to buy fuel at N300 in Nigeria, it is very possible."
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