Checks by Nairametrics on Tuesday, July 18, revealed that some fuel stations in Abuja, the Federal Capital Territory (FCT) were selling fuel at N640 per litre.
Meanwhile, on Monday, July 17, Nairametrics can confirm that fuel stations were still selling at N540 per litre.
What changed?
Several motorists in Abuja have raised the alarm that stations are increasing their prices to an average of N610 to N640 per liter. In a brief chat with Nairametrics on Tuesday, Mike Osatuyi, the National Operations Controller of the Independent Marketers Association of Nigeria (IPMAN), said that he had earlier projected that from the third week of July 2023, when new fuel imports come into the country, there could be an upward review of fuel pump prices, which has now happened.
He attributed the increase in the pump price of fuel to three factors which he highlighted:
The recent increase in crude oil prices in the international market. Recall that Nairametrics had reported days ago, that Brent crude benchmark price had surpassed $80 per barrel for the first time since May 2023.
The increase in the Dollar to Naira exchange. Nairametrics recently reported that although the exchange rate between the naira and the US dollar closed at N795.28/$1 at the official Investor and Exporters window on Monday, 17th July 2023, it traded N820/$1 at the unofficial I&E Window.
The third factor may apply only to states in the North like Sokoto and Maiduguri, which could end up paying even higher than the N640 per litre paid by some Abuja residents as of this morning. This is because of higher transportation costs that require marketers to transport fuel to distant cities in the North.
Are fuel pump prices likely to come down?
The fuel pump prices will depend on market forces. Recall that two months ago during an interview with Arise Television, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) said that fuel pump prices in the country, are reflective of the current market price of the commodity.
What this means is that prices in the market can go down at any time and the market will always adjust itself. It is important to note that as of this morning (10:53 am, GMT+1), Brent crude price was $78.86 per barrel.
What Nigerians can do to cope with new prices?
Stakeholders in Nigeria’s energy industry believe that Nigerians should create alternative energy sources and make some lifestyle changes to cope with increasing fuel pump prices because of the fuel subsidy removal.
Some of the changes include:
Carpooling/car-sharing and making contributory payments for the single car used for such purposes.
Converting cars and generators to run on Autogas
Using public transportation systems for work commutes in states where such is available.
Cut down on driving time. Drive for shorter periods and only use your car when it is necessary.
Cut down on the number of cars you own/drive.
