Fuel Prices Set to Increase as Depot Prices Rise

Depot prices for petrol have risen to N490 per litre, prompting some private downstream companies in Lagos to sell fuel above the fixed rate of N488 per litre. This is likely to lead to further increases in fuel prices in the coming days. CONTINUE FULL READING>>>

Private depots are selling fuel at N490 per litre, while the Nigerian National Petroleum Company Limited depot sells to major marketers at N466.52 per litre.

NNPCL stations sell fuel at N488 per litre, major marketers sell between N488 and N492 per litre, and independent marketers who buy from private depots sell above N500 per litre.

Meanwhile, black market traders are selling fuel at N550 or higher due to hoarding by certain fuel stations. CONTINUE FULL READING>>>

Fuel prices are expected to rise even further due to an increase in depot prices, which have reached N490 per litre.

Consequently, some private downstream companies in Lagos are selling fuel at prices higher than the fixed rate of N488 per litre.

According to reports, the Nigerian National Petroleum Company Limited (NNPCL) depot continues to sell fuel to major marketers at N466.52 per litre. However, private depots are selling fuel at N490 per litre. As a result, fuel pump prices have risen in certain areas of Lagos State.

NNPCL stations are selling fuel at the fixed rate of N488 per litre, while major marketers sell fuel between N488 and N492 per litre. Independent marketers who purchase from private depots at N490 per litre are selling fuel to consumers at prices above N500 per litre.

Furthermore, black market traders, who take advantage of fuel hoarding by some fuel stations, are selling fuel at N550 per litre or even higher prices.

However, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, has said that the Congress is working on an alternative that will benefit Nigerians.  According to him, fuel prices have become too expensive for everyday Nigerians, so the NLC is looking at natural gas alternatives.

He highlighted the fact that fuel is for the upper class of society. Meanwhile, Nigeria has a vast amount of natural gas deposits and should be able to tap into that and create alternatives for Nigerians especially those who are hit hardest by the removal of fuel subsidy.

“The study we found, especially the pilot study conducted in the Edo area where about 10,000 vehicles were converted to compressed natural gas (CNG) and according to a statement by the former Minister of State Petroleum Timipre Sylva, a litre of compressed natural gas (CNG) will cost about N90.

“Even Innoson Motors came to address us and said he was going to produce vehicles that will have provision for CNG and PMS, so if you don’t want to buy PMS at N500 and above per litre, you can buy CNG.

“If you want to buy CNG at N90 per litre, buy it. But in the construction of the vehicles, you have a switch to whatever you want. If you switch to CNG, you use CNG; if you switch to PMS, you use PMS,”he said.

Tinubu administration recently announced that it has begun processes on increasing workers’ salaries and creating a framework for Nigerians to run their vehicles on natural gas alternatives as palliative measures to reduce the burden created by the removal of fuel subsidy.

Edo State Governor, Godwin Obaseki, has recently said that the state possesses a lot of natural gas, and more manufacturing companies can invest in the state and use its natural gas as fuel for various purposes.

According to Obaseki, NIPCO Gas Limited, a private company had established 15 CNG-running stations in Benin to provide an alternative to gasoline-run automobiles. CONTINUE FULL READING>>>