Nigeria’s petrol prices have surged despite a recent 20.34% drop in the landing cost of Premium Motor Spirit (PMS) to N971.57 per litre, as revealed in the November 8, 2024, report from the Major Energy Marketers Association of Nigeria (MEMAN). The unexpected rise in pump prices has drawn sharp criticism from the Nigeria Labour Congress (NLC), which accuses marketers of profiteering at the expense of Nigerians.
According to MEMAN’s daily energy bulletin, the reduced landing cost reflects lower global oil prices and supply chain factors. However, instead of falling prices, Nigerian consumers saw petrol retail prices jump from N617 per litre in August to N1,060 at Nigerian National Petroleum Company (NNPC) stations and as high as N1,180 at independent outlets by November 8.
MEMAN’s data indicates that in August, when Brent crude was priced at $80.72 per barrel, and the exchange rate was N1,611 per dollar, oil marketers imported petrol at a landing cost of N1,219 per litre, with pump prices set at N617 per litre. By November, despite Brent crude prices decreasing to $75.57 per barrel and the exchange rate slightly rising to N1,665.84 per dollar, the estimated landing cost dropped to N971.57 per litre. However, retail prices continued to rise, triggering criticism from the NLC.
In a recent communique, the NLC accused petroleum marketers of inflating prices and manipulating market factors, calling the current rates unjustifiably high. “There may be a gang-up against Nigerians by fat cats in the industry,” the NLC stated, adding that the inflated prices are worsening hardship for citizens already struggling with economic challenges.
The union alleged that oil marketers are padding costs and profiting excessively at the public’s expense. The NLC called on the government to reactivate Nigeria’s public refineries in Port Harcourt, Warri, and Kaduna to counter what it described as monopolistic practices by major players in the industry. The NLC announced plans for a nationwide strike beginning December 1, 2024, urging its members to protest the high petrol prices and what it describes as exploitative economic policies that have led to increased suffering and poverty among Nigerians.
The rising tensions highlight a pressing need for clarity and action on fuel pricing policies, as the Nigerian public and labor groups push for relief amid economic challenges.
