Dangote Refinery: Abuja motorists, commuters decry delay in petrol price cuts

Motorists and commuters across the Federal Capital Territory have decried petrol stations’ failure to reduce petrol prices following the Dangote Refinery’s latest N25 per litre cut. Dangote Refinery on Monday announced a N25 per litre reduction in its gantry price to N1,325 per litre.
The latest reduction comes after petrol pump prices rose significantly to between N1,395 per litre and N1,450 per litre in Abuja and other parts of the country over the past two weeks.
The reduction also comes as international crude oil prices retreat. Brent crude was trading at $100.40 per barrel, down 3.34 per cent, while West Texas Intermediate stood at $90.40 per barrel, down 3.83 per cent, at the latest trading.
Checks in Abuja on Tuesday showed that some filling stations had yet to adjust their petrol prices, leaving motorists to pay the higher rates. MRS retail outlets were still selling petrol at N1,395 per litre, while NIPCO outlets sold at N1,430 per litre. Mobil outlets sold at N1,430 per litre, Conoil at N1,410 and Total filling stations sold at N1,430 per litre.
Motorists said they were already grappling with rising food, transportation, and household expenses, and that the high petrol prices represent another unwelcome strain.
Olusegun Shokoya, a motorist in Gwarinpa, said he purchased petrol at N1,430 per litre. Mr Shokoya said the persistent increase in fuel prices was putting growing financial pressure on families and making it increasingly difficult for many Nigerians to meet their basic needs.
For Mohamed Hamzat, who said that he bought petrol at N1,430 per litre in Dutse, the impact of the increase goes beyond the cost of fuelling his vehicle.
“I can not feed my children three times a day because of the high cost of things in the market. Traders complain that it is because of the increase in fuel prices. We urge the federal government to urgently intervene by stabilising fuel prices,” he said.
Another motorist, Chigozie Ugwu, described the situation as unbearable, saying many households are struggling to cope with the ripple effects of rising fuel costs. He said the concern was particularly strong among motorists who depended on their vehicles for their daily activities.
Shotayo Aliyu, a commuter, said she feared every increase in the pump price of petrol would eventually translate into higher transport fares and more expensive goods. She said that the rising cost of petrol would inevitably push up food prices as traders sought to recover increased transportation expenses.
Ms Aliyu said the additional cost would eventually be passed on to consumers, further reducing households’ purchasing power.
“The increase in fuel prices will continue to make foodstuffs more expensive because traders will want to recover transportation costs and make a profit,” she said.
She called on the federal government to intervene and stabilise fuel prices to ease the economic burden on Nigerians.
Meanwhile, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, earlier said stakeholders would not rule out a reduction in petrol prices.
Mr Gillis-Harry said this during a consultation with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Federal Competition and Consumer Protection Commission (FCCPC), and other stakeholders. According to him, PETROAN and other stakeholders would put Nigerians’ interests first, but not at their expense.
Chinedu Ukadike, national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said that the volatility in international crude oil prices remained a major challenge for independent petroleum products marketers.
Mr Ukadike said changes in international crude oil prices would ultimately affect the prices of refined petroleum products in the global market. According to him, the major challenge facing independent marketers is market volatility, as many operators purchased petroleum products before the latest decline in prices.
He said some members of the association had bought products only a few weeks ago and would therefore need to manage the resulting losses while remaining in business.
“Most of our members just bought some products a few weeks ago. They will continue to cushion the effect of the loss and also continue to find a way to be in business,” he said.
He said the situation was part of the realities of a deregulated market, where competition and market forces determine prices.
“That is the beauty of a free economy. That is the beauty of deregulation, where competition drives the market,” he said.
He, however, said marketers would continue to adjust to prevailing market conditions while seeking ways to remain competitive and sustain their businesses.
(NAN)
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