Minister of Petroleum Directs NNPCL to Sell Petrol Above N1000

The Minister of State for Petroleum Resources, Heineken Lokpobiri, has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell petrol above the landing cost of N1,117 per litre.

This directive aims to curb the rampant smuggling of petroleum products to neighboring countries. Following the removal of the petrol subsidy in May 2023, fuel prices in Nigeria skyrocketed from around N197 to approximately N650 per litre.

Currently, petrol sells at an average of N701.99 in Nigeria, but much higher in neighboring countries like the Republic of Benin (N1,672.05) and Cameroon (N2,061.55). This significant price disparity has incentivized smugglers to transport petrol out of Nigeria for higher profits.

Lokpobiri explained the rationale behind the decision: "Selling imported fuel above the landing cost will reduce the profit margin for smugglers, thus deterring them from transporting petrol out of Nigeria."

The minister believes that this strategy will help manage fuel prices and ensure local availability amidst regional price disparities.

See some reactions below:

One anonymous commenter expressed their frustration, stating, "The useless government will finish this country very soon if we allow them."

Another user, Bowyer Chatelain, lamented, "What this country needs is total deliverance because Nigeria is burning in pains and hardship."

Critics argue that the government should focus on tightening border controls rather than increasing fuel prices. "Normal people will ensure that people paid to man the borders will ensure that it is not possible to smuggle the products," one commenter suggested. "But no, you come up with a really dumb solution that is affecting everyone."

The directive has also led to concerns about its impact on the already fragile economy and the mental health of citizens. Adebayo Tobi questioned, "Before you think of the 'smugglers,' have you thought about the impact of officially declaring petrol pump price at above 1,000 naira? Have you considered what its attending impacts would be on the already fragile economy and mental health of the citizens?"