Nigerians living in Lagos and Ogun States continue to spend more as transport fare as transporters have refused to lower fare citing fuel scarcity and long queues in filling stations as justification for the increase.
Transport fares were hiked about three weeks ago following return of petrol queues, especially, in Lagos and Ogun States and has remained unchanged. Transporters complain that the increase in pump price of petrol by marketers is arbitrary as the supply situation remains unresolved.
Most operators raised fares between 50 to 75 per cent, citing scarcity, blackmarket costs and even pump price rises by marketers.
From Maryland to Iyana Ipaja, the transport fare which was earlier N300 is now N500 while return on the same route is N600. Similarly, from Maryland to Yaba- Ojuelegba previously charged at N300 is now N500 and to Obalende is N700. Equally, Costain to Ikeja and Allen previously charged at N300 is now N600 depending on period as peak period is more demanding.
The fuel situation in Lagos, Ogun, and other states worsened as independent marketers began buying the product from private depots at N780 per litre, up from N595 per litre—a 31 per cent increase. This has led to marketers selling above N800 a litre.
Our interaction with some commercial drivers said, except NNPC retail that sells N560 a litre, others like Conoil, MRS, NipCo sell at between N760 to N780 a litre.
For independent dealers, their prices go as high as N900 to N950 a litre in most parts of Lagos and Ogun border towns.
According to the public relations officer(PRO) of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, the price hike reflects the current demand and supply dynamics in the domestic market.
Despite the challenging situation, he expressed optimism that conditions could improve in the coming days. Ukadike noted that more trucks have been dispatched from depots in recent days, though independent marketers continue to source the product at higher rates.
He explained that, “NNPC has started releasing products to independent marketers. The queues you see now are mostly temporary, appearing in the morning and disappearing by evening. This pattern will continue until supply stabilises and becomes sufficient.”
He added that the ongoing rainy season has further complicated distribution, slowing down the movement of trucks to northern regions. However, he believes the situation will ease in a few days.
The six-week-long petrol distribution challenges have led to persistent long queues at filling stations nationwide, with many marketers raising their pump prices.
In Abuja, while queues have slightly reduced in the central areas, supply remains tight in other parts of the Federal Capital Territory (FCT).
Pump prices also remain high, ranging from N685 per litre at major marketers’ outlets to N950 per litre at independent stations.
Commenting on the situation, Ukadike explained that, “We sell at prices that allow us to cover costs and make a small profit. Transportation costs have skyrocketed, with the cost of delivering products rising from N800,000 to N3.5 million due to the high cost of diesel and truck maintenance.”
Meanwhile the management of Dangote refinery has called for restraints in reports detailing dates of actual refining of Premium Motor Spirit (PMS) also called petrol from its facility.
Spokesman of the Dangote Group Anthony Chiejine, speaking with LEADERSHIP while reacting to a fresh report by Argus Media that the plant will begin actual refining of petrol in September as against August earlier scheduled, said the plant is going on with plans to begin refining of petrol.
“We have strengthened our processes and are consistent with our plans. When we said we are going to refine diesel the media especially the foreign media were reporting all sorts of things casting doubt but today everything is clear and everyone is quiet”
“I don’t understand why people are proving and spreading production dates for us. We are on course and will refine petrol as promised. This issue of August and September is not addressing the real issue. Anyone can go ahead and write but we are focused” he told our Correspondent.
His reaction follows reports indicating that the expected period of petrol refining from Dangote may now begin by September. The production period has seen several delays.
It is also expected that the 210,000 barrels a day Port Harcourt refinery would begin operations by November.
First petrol from Dangote is expected in September, according to a report by Argus media. Dangote obtained regulatory approval to start its 247,000 b/d fluid catalytic cracker and 27,000 b/d alkylation units in April and May, respectively, but that the refiner seems to have deliberately delayed start-up of these secondary units.
This is because it plans to sell much of its product to the domestic market, where government intervention through the Nigerian National Petroleum Company Limited (NNPC) continues to curtail prices.
Sources at Port Harcourt told Argus that the restart of a 60,000 b/d section that has been delayed several times since April 2023 is on course to happen by 31 August.
The refinery received 450,000 bl of domestic Bonny Light crude in the first half of July, the second supply of feedstock after 475,000 bl arrived between 28 December and 18 January.
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