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Tinubu’s Tumult: Nigerians Grapple with Soaring Inflation as Petrol Hits N617 Per Litre

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ABUJA, Nigeria – Nigerian motorists are facing a fresh round of hardship as the price of petrol rises to N617 per litre, marking a significant increase from the previous rate of N539 per litre.

This hike in fuel prices comes amid concerns over the recent predictions by oil marketers that petrol price could surge to N700 per litre in the near future.

The increase was during a visit to an NNPC filling station in the Central area of Abuja, where the new price was already being implemented.

A customer at the station on Tuesday, July 18, 2023, confirmed the new price, stating, “It is true, I just bought at N617 per litre.”

The underlying cause of the increase remains unclear.

However, market observers suggest that it is likely linked to recent market trends and predictions of rising fuel prices.

As the country grapples with this unforeseen price surge, the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NDMPRA, is yet to comment on the issue.

The lack of an official statement from the regulatory body raises further questions about the factors influencing the sudden price hike and what measures, if any, will be taken to address the situation.

The price increase significantly strains personal and business finances in a country where many depend heavily on fuel for daily activities.

This sudden surge in fuel price will likely fuel discussions around the government’s energy policies and the country’s oil and gas sector.

The report comes amidst economic uncertainty fueled by global market volatility and ongoing challenges in Nigeria’s oil and gas sector.

Further information is eagerly awaited as Nigerians continue to monitor the situation closely.

Fuel Subsidy: NLC Warns Petrol Price May Hit N1,000 per Litre by December 2023

The Nigeria Labour Congress, NLC, has cautioned that the pump price of Premium Motor Spirit, PMS, also known as petrol, could rise to N1,000 per litre by December 2023 due to the removal of fuel subsidy and a lack of competition in the oil sector.

Last week, the newly inaugurated President, Bola Tinubu, announced the removal of fuel subsidy during his inauguration speech.

The announcement led to a sudden increase in petrol prices and fuel hoarding nationwide.

Following the President’s announcement, the Nigeria National Petroleum Company Limited (NNPCL) revised the pump price of petrol from about N185 to over N500, prompting the NLC to demand a reversal of the fuel subsidy removal. The NLC threatened to stage a protest over the petrol price hike on Wednesday, June 7, 2023.

Speaking on Arise News on Sunday, June 4, 2023, NLC National President Jeo Ajaero stated that the government’s failure to liberalize the oil sector to allow for more private investment could push the pump price of fuel as high as N1,000 per litre.

He criticized the monopolistic state of the oil sector, citing Dangote’s fuel production dominance and the non-functioning state-owned refineries as obstacles to market competition.

Ajaero insisted that the price of petrol might continue to surge unless the refineries in Port Harcourt, Warri, and Kaduna are operating optimally.

Expressing his concerns, Ajaero questioned, “How can there be market forces if Dangote is the only one producing? Are we not maintaining a private sector monopoly that is even worse than the public sector monopoly that the NNPC has maintained? Why are the Port Harcourt, Warri, and Kaduna refineries not working?”

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