Buy Petrol At N1,000/liter Or CNG At N200/meter: Tinubu’s Controversial Solution

 

President Bola Tinubu’s recent statement advising Nigerians to buy petrol at N1,000 per liter or Compressed Natural Gas (CNG) at N200 per meter has sparked widespread outrage and a source of concern among Nigerians. This comes after fuel prices skyrocketed to N1,300 per liter at some locations, a staggering increase from the N195 per liter price when he Tinubu took office less than 18 months ago.

The fuel subsidy removal, implemented by Tinubu’s administration, has led to a surge in transportation costs, with prices increasing by over 300%. This has had a ripple effect on the economy, with inflation rising to alarming levels. I will continue to argue that due to the failure of the government to provide a proper policy framework before implementing the subsidy removal, leaving citizens to bear the brunt of the decision.

The removal of the fuel subsidy has worsened poverty levels, with the number of malnourished Nigerians increasing. The surge in fuel prices has led to increased transportation costs, affecting the livelihoods of many Nigerians. The government’s handling of the fuel subsidy removal has been criticized for lacking transparency and accountability.

instead of providing tangible solutions to alleviate the suffering of Nigerians, This administration has resorted to insensitive statements. The recent launch of CNG at N230 per liter, while I see it a welcome move, does little to address the underlying issues caused by the fuel subsidy removal.

The consequences of the fuel subsidy removal are dire, with increased poverty, economic hardship, and lack of transparency. To move forward, Tinubu’s government must learn on how to prioritize the welfare of our citizens and develop policies that promote economic stability and growth in place of inconsistent and insensitive government statement.

This includes providing a proper policy framework that will ensure a robust implementation, investing in alternative energy sources, and addressing corruption surrounding the fuel subsidy. Fundamentally, Nigerians deserve better than insensitive statements and impulsive policy decisions. Tinubu’s government must demonstrate its commitment to improving the lives of Nigerians through effective governance and policy decisions.

Petrol Sells at N1,065 in Abuja, N998 in Lagos After NNPC-Dangote Deal Collapse

NNPC Limited retail stations and independent outlets started selling petrol as high as N1,065 per litre in Abuja, and N998 in Lagos among other new prices across Nigerian states, on Wednesday.

This price hike came after NNPCL ended its exclusive purchase deal with the Dangote Refinery, 

The decision to set these new prices was reached through a joint review between NNPCL and independent fuel marketers.

Prior to this, Premium Times had revealed  that NNPCL quit its exclusive supply deal with Dangote, paving the way for marketers to negotiate prices directly with the refinery.

The quoted prices are between N1,030 and N1,065 per litre in Abuja, N998 at NNPCL stations in Lagos, N1,025 in other southwest states, between N1,060 and N1,070 in northeastern states, and between N1,055 and N1,075 south-south states.

Since the Dangote Refinery began operations in May, its relationship with NNPCL has been rocky. According to Aliko Dangote, CEO of Dangote Group, NNPCL lost it's 20% stake in the refinery after failing to meet financial obligations.

NNPCL later claimed it intentionally reduced its stake based on internal assessments.

There has also been some back-and-forth over petrol pricing. Dangote Group initially  stated that NNPCL had full authority to set prices, but it retracted that statement.

The regulator quickly clarified that, in a deregulated market, prices are dictated by market forces, not NNPCL.

In July, the Federal Executive Council (FEC) stepped in directing both parties to resolve their differences.

By September, NNPCL estimated that petrol prices would be N950.22 in Lagos and N992.22 in Abuja based on its negotiations with the refinery.

“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery, which recognise current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021,” NNPCL said at the time.

“NNPC Ltd. can confirm that it is paying Dangote Refinery in US [dollars] for September 2024 PMS offtake, as naira transactions will only commence on October 1st, 2024. We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”

NNPCL began lifting petrol from Dangote Refinery on September 15, and the breakdown of their exclusive agreement has now influenced the latest price review.