Many commuters in Lagos were stranded and could not proceed to their destinations following the abysmal increase in the price of Premium Motor Spirit, also known as petroleum.
Gasoline has been scarce in Nigeria since June, leading to queues nationwide, while price differential at the fueling stations left longer queues at NNPCL outlets where fuel was sold cheaper.
Things took a different turn on Tuesday after the fuel increase by NNPCL outlets which jerked up the price to N855 from N615 or N617, a N200 difference, while other marketers sell at N1,000 and N950 per litre. From that moment, transporters in Lagos suddenly increased their fares and helpless commuters resorted to trekking to their various destinations.
For instance, a trip to Ketu from Ikorodu via the Yellow buses which hitherto was N500 rose sharply to N700 and N800 while the Long buses charge between N500 and N600 as against the previous N400. Ikorodu to Gberigbe, a suburb in Lagos rose from N800 to between N1,000 and N1,100 while commuters who hitherto pay between N800 and N1,000 from Ikorodu to Victoria Island, since the new price increase by the NNPCL, now pay between N1,200 and N1,300.
A ride from Victoria Island to Iyana Oworo which previously was N400 now goes between N500 and N600 while the fares from Iyana Oworo to Ikorodu rose to N1,000 from N700. Passengers now pay N700 for Oshodi to Ketu which formerly was N400 or N500
The smaller buses that charge between N200 and N300 from Ketu to Berger, now charge between N400 and N500 while Tricycles on the same route now charge N300 from Ketu to Secretariat on the CMD Road.
At the Secretariat bus stop, Alausa, the situation was quite challenging as there was a large crowd of people, waiting for buses, who had all gone in search of fuel. As a result, people had to wait for hours before finding transportation. This scarcity of buses led conductors to hike the fare, further adding to the frustration of the commuters.
Similarly, at the Ikorodu bus stop, there were few buses available to convey people to their destinations, leading to long queues for BRT buses and extended waiting times.
One major issue along the route from Gberigbe to Ikorodu was the closure of almost all fuel stations leaving the roads relatively free of traffic. Between Ikorodu and Ketu, only two fuel stations were operational while all the fueling stations in Ketu were not dispensing fuel, further exacerbating the fuel scarcity issue.
However, some stakeholders in the oil and gas industry said the increase in the petrol pump price was unavoidable, adding the price hike would help alleviate the subsidy burden on both the Federal Government and Nigerian National Petroleum Company Ltd. (NNPCL).
Henry Adigun, an oil and gas consultant, said that while the price increase is to address the subsidy issue, it did not resolve the need for total deregulation of the downstream petroleum sector.
“Unless market prices align with international product prices, NNPCL will remain the sole importer,” Adigun explained.
He welcomed the commencement of petrol production by Dangote Refinery but noted that Dangote’s supply would hinge on favourable market conditions, and also emphasised the need for collaboration with marketers, as direct loading from the gantry might not be feasible for many distributors.
Ukadike Chinedu, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said that NNPCL had not officially informed marketers about the price increase and is still awaiting further directives from NNPCL.
He expressed optimism that Dangote Refinery’s entry into the market would enhance product availability and address scarcity issues. “I anticipate that Dangote will increase the supply of petrol and automatic gasoline oil in the Nigerian market. Marketers should be allowed to purchase products from Dangote and compete with NNPCL,” Chinedu added.
He said that availability was crucial, but noted that competition would follow.
Ayodele Oni, Partner at Bloomfield Law Practice, described the price increase as unfortunate but reflective of market realities, as he wondered whether the new price covers all costs and provides a sufficient margin.
“If the new price is market-driven and covers all costs, it will be effective. Otherwise, we may face the same issues,” he said.
Oni noted that the Petroleum Industry Act (PIA) encourages market pricing rather than monopoly but noted that availability might improve, while prices are maintained.
Comments are closed.