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Enioluwa Adeniyi
Guest
During the lead-up to the 2023 presidential election, Bola Ahmed Tinubu, the All Progressives Congress (APC) candidate, made bold promises to address the rising cost of fuel if elected.
Speaking to supporters at a campaign rally in Abeokuta on January 25, 2023, Tinubu tackled pressing issues such as fuel scarcity and escalating prices, assuring Nigerians of a more stable fuel market.
At the time, petrol prices hovered around ₦195 per litre, with speculations suggesting an imminent rise to ₦200.
However, Tinubu reassured the public, stating, “They are plotting, but they will fail. They said fuel prices will increase and reach ₦200 per litre. Go and relax; we will bring it down,” addressing his audience in his native Yoruba.
Following his victory over Atiku Abubakar of the Peoples Democratic Party (PDP) and Peter Obi of the Labour Party (LP) in the presidential election, expectations were high that Tinubu would deliver on his campaign promise.
Yet, in a stark turn of events, his inaugural speech on May 29, 2023, revealed plans to remove the fuel subsidy, effectively dashing hopes for lower fuel prices.
Since the subsidy was lifted, the price of Premium Motor Spirit (PMS) has surged, leading to widespread dissatisfaction among Nigerians who are grappling with the financial implications of the rising fuel costs.
In this article, Tribune Online examines the four instances of petrol price hikes under Tinubu’s administration over the past 16 months.
1. First Increment – May 2023
The first petrol price hike occurred shortly after Tinubu announced the subsidy removal in May 2023, disrupting the petroleum industry. Following the announcement, the Nigerian National Petroleum Company Limited (NNPCL) raised the price from N195 to between N448 and N557 per litre, marking a 185.64% increase. The federal government defended the hike, explaining that the subsidy, which cost over N400 billion monthly, was unsustainable.
2. Second Increment – June 2023
Barely a month later, in June 2023, the price of petrol rose again from N557 to N617 per litre, an increase of 10.77%. NNPCL attributed the hike to market dynamics. Chinedu Okoronkwo, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that global economic factors beyond local control were responsible for the increase.
3. Third Increment – September 2024
The third adjustment came in September 2024, with prices jumping by 45.38% to between N855 and N897 per litre. NNPCL revealed that the increase resulted from financial difficulties, including high debts to petrol suppliers. In a statement, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed that the company was under severe financial pressure, which posed a threat to the sustainability of fuel supply.
4. Fourth Increment – October 2024
The most recent increase followed NNPCL’s decision to step back from its role as a middleman between marketers and the Dangote Refinery. This opened the market to direct dealings between the refinery and marketers. Consequently, NNPCL and other fuel stations adjusted their pump prices to align with refinery costs, leading to a 15% increase to N1,030 per litre.
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