Fuel queues have resurfaced across major cities in Nigeria, including Lagos, following a significant hike in petrol prices by the Nigerian National Petroleum Company Ltd. (NNPC) and other marketers. The increase has forced many filling stations, such as those in areas like Ikorodu Road, Ikeja, and Bariga, to temporarily close.
At NNPC stations, petrol prices have risen to N998 per litre, while independent marketers like Northwest are selling at N1,000, Hyden Petroleum at N1,100, and NIPCO at N1,050 per litre. This marks the third price hike in the past two months, coinciding with the start of fuel purchases from the Dangote Oil Refinery in Lagos.
In some northern parts of the country, petrol prices have surged to N1,003 per litre, further burdening consumers. The price of fuel in Lagos increased from N855 to N998, with similar spikes in other regions.
Dr. Ayodele Oni, an energy lawyer and partner at Bloomfield Law Practice, recommended that the government foster competition by promoting the establishment of modular refineries and revamping national facilities to mitigate the impact of rising prices. He also called for efforts to stabilise the Naira through short-term foreign exchange interventions and long-term economic diversification into manufacturing, agriculture, and alternative fuel sources like Compressed Natural Gas (CNG).
Dr. Oni also urged the introduction of mass transit systems to help reduce the strain of fuel price fluctuations on the Nigerian public. According to him, the recent price hikes are largely driven by the weakening Naira in the petroleum sector, which operates within a dollarized market. He expressed hope that the crude-for-Naira arrangement between the NNPC and the Dangote Refinery could stabilize the exchange rate and alleviate pricing pressures in the long run.
