The Nigerian National Petroleum Corporation Limited (NNPC) has announced a hike in the pump price of Premium Motor Spirit (PMS) popularly known as petrol, from N195 per litre to N537 per litre. The new price template was officially made public on Wednesday and has led to significant adjustments in fuel prices across the country.
According to NNPC, Lagos State currently has the lowest pump price at N488 per litre, while the highest prices are found in Maiduguri and Damaturu, where petrol goes for N577 per litre. It is important to note that the price adjustment represents a more than 200% increase.
The price hike will affect goods and services across the board, leading to a rise in inflation. As expected, many filling stations in the capital city, as well as across states, have adjusted their pump prices in line with the new regulation.
It is worth noting that this hike comes only two days after Nigeria’s President, Bola Ahmed Tinubu, announced that fuel subsidies would be removed. Reports indicate that in the first half of 2023, Nigeria alone spent N3.6 trillion on fuel subsidy payments. If fuel subsidies payment is discontinued totally across the country, Nigeria stands to save a whopping N6.7 trillion.
Furthermore, according to the Nigeria Extractive Industries Transparency Initiative, Nigeria has spent a total of N13.7 trillion on fuel subsidies over the last 13 years.
It remains to be seen how Nigerians, who are already grappling with inflation and economic hardship, will cope with yet another steep increase in the price of fuel.
