The Nigeria National Petroleum Company (NNPC) Limited has raised the price of gasoline at its retail outlets across the country, forcing the transport fares to skyrocket.
This decision comes shortly after President Bola Tinubu announced the end of petrol subsidies in his inaugural speech.
According to a statement from NNPC’s Chief Corporate Communications Officer, Garba Deen Muhammad, the prices will fluctuate in response to market dynamics.
Although the specific new prices were not disclosed, NNPC fuel stations in Lagos have been selling petrol at N488 per liter, which is a 189 percent increase from the approved N169 price in July 2022.
This aligns with a viral document circulating that outlines the petrol pump prices nationwide.
An unauthorized NNPC official confirmed that the viral document was not officially released by the oil company.
The document specifies prices of N488 in Lagos, N500 in the rest of the South West, N511 to N520 in the South-South and South East, and N535 to N557 in the Northern states.
As a result of the fuel subsidy and increased petrol prices, transportation fares have also gone up.
Many commercial drivers in major cities have raised fares by over 60 percent, while others have even doubled their prices.
The cost of petrol subsidies has been a significant financial burden for Nigeria. In 2022 alone, these subsidies cost the country $10 billion, and $7.5 billion was allocated for them in the first half of 2023.
However, with Nigeria grappling with a debt burden of $103 billion and N23.7 trillion in Ways and Means Advances from the Central Bank of Nigeria, these subsidies have become unsustainable.
Experts have warned that Nigeria’s debt service to revenue ratio may surpass 100 percent in 2023.
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