Fuel Price Hike in Nigeria: PENGASSAN Slams Oil Marketers, Says Petrol Should Sell for ₦700–₦750 Per Litre
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has strongly criticized the recent surge in petrol prices across Nigeria, describing it as an exploitation of ordinary Nigerians by oil marketers. According to Osifo, the current cost of Premium Motor Spirit (PMS), commonly known as petrol, is unjustifiably high and should be between ₦700 and ₦750 per litre, not the nearly ₦900 being charged in some areas.
This stern warning from PENGASSAN comes at a time when Nigerians are already grappling with intense economic hardship, worsened by rising inflation, a weakening naira, and persistent fuel price fluctuations since the fuel subsidy removal by President Bola Ahmed Tinubu in 2023.
Why Are Fuel Prices Rising Again in Nigeria?
The recent increase in fuel prices in Nigeria has been attributed to multiple overlapping factors. The first major driver is the global rise in crude oil prices, largely triggered by escalating tensions in the Middle East, especially the renewed hostilities between Israel and Iran.
Following this international development, local oil depots in Nigeria have hiked their ex-depot prices—the price at which petrol is sold to filling stations. This has had a direct impact on retail fuel prices, which are now climbing dangerously close to the ₦1,000-per-litre mark in some regions.
Data from Petroleumprice.ng revealed that:
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Dangote Petroleum Refinery increased its petrol price from ₦825 to ₦840.
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Rainoil raised prices from ₦850 to ₦900.
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Fynefield adjusted its ex-depot rate to ₦930.
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Mainland pushed its price to ₦920.
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Sigmund priced PMS at ₦920.
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Matrix Warri set it at ₦910.
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NIPCO jumped from ₦827 to ₦895.
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Aiteo now sells at ₦840.
These steep increases suggest that retail fuel prices in Nigeria could soon hit ₦1,000 per litre, putting immense pressure on households and small businesses already struggling to cope.
Tanker Drivers’ Protest in Lagos Deepens the Crisis
As if the global crude oil situation was not bad enough, a strike by tanker drivers in the Lekki-Epe axis of Lagos further worsened the situation by disrupting fuel distribution. The protest, which was centered around the imposition of a ₦12,500 E-Call-Up fee for tanker drivers, caused a temporary halt in petrol loading activities at several depots on Monday.
A depot operator who spoke on condition of anonymity warned:
“If unresolved, this E-Call-Up issue could plunge the country into another fuel scarcity.”
This looming threat of fuel scarcity in Nigeria is likely to affect both urban and rural areas if the government does not intervene quickly.
Crude Oil Prices Rising: Blessing or Curse?
While the Federal Government of Nigeria may see a short-term boost in revenue due to the rise in oil prices—since the budget benchmark for 2025 is $75 per barrel—this development may end up hurting Nigerians if it leads to a hike in the prices of refined petroleum products.
As of Monday:
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Bonny Light crude oil sold for $78.62 per barrel
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Brass River and Qua Iboe are also on the rise
Although this surpasses the budget benchmark, it creates economic imbalance since Nigeria still imports most of its refined petroleum products, despite being a top crude oil producer.
Why Nigeria’s Refineries Are Still Down
One of the biggest questions in the minds of many Nigerians is: Why are we still importing petrol when we have refineries?
According to PENGASSAN President Festus Osifo, the continued shutdown of Nigeria’s state-owned refineries—like the Port Harcourt Refinery—is not just a matter of technical difficulties but is politically motivated.
Speaking at a press conference in Abuja, Osifo said:
“We are aware the Port Harcourt Refinery was recently shut for maintenance, but the deeper issue is that these refineries operate far below efficiency. Political interference, not just technical issues, has stalled their performance.”
He further noted that the government has spent over $2.5 billion on refinery rehabilitation over the years, yet the results remain dismal. The Port Harcourt Refinery is reportedly undergoing a 30-day maintenance shutdown and is expected to resume operations next week, but skepticism remains high among experts and citizens alike.
PENGASSAN Demands Transparency and Fair Pricing
Festus Osifo didn’t just criticize oil marketers and government regulators; he also offered actionable solutions. He specifically called on the Nigerian National Petroleum Company Limited (NNPCL) to revisit its model for running the refineries. PENGASSAN, according to him, has been proposing effective reforms for over 15 years, yet the suggestions have largely been ignored.
He also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to implement a fair pricing mechanism in a deregulated market. Osifo stated:
“NMDPRA must not allow marketers to exploit Nigerians under the guise of deregulation. Crude price and exchange rate account for nearly 80% of the final retail price. With current international benchmarks, petrol should retail between ₦700 and ₦750 per litre.”
This is a significant statement, especially as petrol continues to retail between ₦875 and ₦905 per litre nationwide, even though crude oil prices have recently dropped from $80 to about $62–$65 per barrel at various points.
Osifo also recommended that NMDPRA start publishing transparent pricing templates to prevent arbitrary pricing and price gouging by marketers.
Insecurity in Oil-Producing Areas Could Spark More Trouble
Another major concern raised by PENGASSAN is the insecurity plaguing Nigeria’s oil-producing regions, especially in the Niger Delta and around critical waterway infrastructure. Osifo warned that if this situation is not addressed urgently, it could push multinational oil companies to divest from Nigeria, further destabilizing the economy.
This is happening despite recent incentives rolled out by the Federal Government to encourage oil exploration and production. However, if companies do not feel safe or see long-term profitability, they may pull out—leaving Nigeria with reduced investment and fewer job opportunities in the oil and gas sector.
Conclusion: What Needs to Happen Now?
The current fuel price situation in Nigeria is a reflection of deep-rooted problems, ranging from global economic pressures to domestic policy failures and infrastructural decay. The following actions are urgently needed:
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Resolve the E-Call-Up crisis with tanker drivers to prevent supply disruption.
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Enforce fair pricing through NMDPRA and prevent marketer exploitation.
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Fix and fully operate Nigerian refineries, especially after billions have been spent on repairs.
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Improve security in oil-producing areas to prevent divestment.
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Adopt PENGASSAN’s long-standing reform suggestions to ensure long-term fuel stability.
Until these steps are taken, Nigerians may continue to face crippling fuel costs, further compounding the already harsh economic realities.
For the latest updates on fuel prices, refinery rehabilitation, and government petroleum policies, stay connected to NaijaRush.com — your trusted source for breaking news and in-depth analysis in Nigeria.
