Fuel price jumps to N190 per litre in Abuja despite gulping over N2.04trn on subsidy payment

Published 

on November 15, 2022

The price of Premium Motor Spirit, PMS, popularly known as petrol price has jumped to N190/per liter in Federal Capital Territory from N165/per litre, despite federal government spending over N2.04trn on subsidy.

DRILOGIST reporter who went round the nation’s capital on Monday, observed that Forte oil located at Lifecamp, A.A Rano, Shema, NNPC filling stations along Kubwa Expressway now sell fuel at N180-190/per litre pump price as queues substantially disappear in Abuja.

Speaking to DRILOGIST, a driver, Mr Kasim Ademola, said that he bought fuel on Monday morning at Forte Oil filling station at 190/per litre.

Emeka Agu, a resident of Kafe Garden Estate, said within the weekend, he bought fuel at Total filling station for 190/per litre with less queue.

“The situation has improved because I bought fuel at Gwarimpa during the weekend with less queue but with an increased pump price of N190/per litre. This morning, I bought at NNPC along Kubwa expressway for N180/per litre”, he said.

Recall that for over six weeks, Nigerians had grappled with the challenge of buying fuel in Abuja, Nasarawa and most cities across the country.

The challenge seems to have been eased from the nation’s capital as at Monday morning, however, Nigerians would now have to pay an additional cost of N25 per litre to get an already subsidized fuel.

Nigeria National Petroleum Corporation Limited disclosed that it spent N448.78 billion in July to offset subsidy payment.

The Group Managing Director, Mele Kyari said this during federation account allocation committee (FAAC) meeting on August 24th, 2022.

According to the statistics, the country has expended N2.04 trillion as subsidy payments in the 7-month period(January to July) — while the payment of N1.04 trillion has been carried forward.

When DRILOGIST contacted an industrial analyst on the development, former Lagos Chairman of Major Oil Marketers Association of Nigeria, MOMAN, Mr Tunji Oyebanji, said the major challenge is the unstable foreign exchange rate at the parallel market.

He says, “There is a log of cost in moving petrol that is dollar dominated. If the dollar rate keeps changing, you know that there is a problem. People have to recover their cost, the reason for increased petrol pump price. This is also a problem of having a fixed petrol price.”