Fuel scarcity and petrol price hike update for November 24, 2024
Here’s a simplified and easy-to-read version:
Nigerians are growing increasingly frustrated with the recent rise in fuel prices introduced by the Nigerian National Petroleum Company (NNPC) Limited. Meanwhile, Gistreel shares updates on fuel scarcity, price changes, and responses from both the government and the public.
The Dangote Petroleum Refinery has criticized the Federal Government for not keeping its promise to supply crude oil through the naira-for-crude agreement. According to Devakumar Edwin, Vice President of Dangote Industries Limited, the NNPC has delivered only a small portion of the agreed crude supply, making it hard to increase the production of refined products.
In a Reuters report, Edwin highlighted that the NNPC had promised to deliver at least 385,000 barrels of crude oil per day (bpd) since October, but the actual supply has been far below this target. “We need 650,000 bpd, but even the promised 385,000 bpd isn’t being met,” he said.
On a positive note, Nigerians might see a slight drop in petrol prices as the cost of importing petroleum products has decreased. Data from major marketers, including the NNPC, shows that the landing cost of petrol has fallen from ₦977 to ₦935.94 per litre. This reduction should lead to price cuts at filling stations across the country.
The Major Energy Marketers Association of Nigeria (MEMAN) also reported that the landing cost of diesel has dropped to ₦1,071.8 per litre, based on an exchange rate of ₦1,659.37 per dollar. According to MEMAN’s Tuesday report, the current ex-depot prices in Lagos are:
- Petrol: ₦1,029 per litre
- Diesel: ₦1,120 per litre
- Aviation fuel: ₦1,040 per litre
- LPG: ₦1,125 per litre
- Compressed Natural Gas (CNG): ₦230–₦450 per standard cubic meter (scm)
The recent stability in the exchange rate is seen as a major reason for the reduced landing costs of petroleum products in Nigeria.
