In the midst of ongoing fuel scarcity rocking the country, the Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, Wednesday, flagged off the auctioning of seized Premium Motor Spirit (PMS) by men and officers of the Operation Whirlwind, to the general public in Adamawa state.
The development came as the petrol pump prices rose to N998 and N1, 030 per litre Wednesday at various outlets of the Nigerian National Petroleum Company Limited (NNPC Ltd) in Lagos and Abuja, respectively.
Petrol pump prices rose to N998 and N1,030 per litre on Wednesday at various outlets of the Nigerian National Petroleum Company Limited (NNPC Ltd) in Lagos and Abuja, respectively.
This followed the decision by the NNPCL to terminate its exclusive purchase agreement with Dangote Refinery.
The media was awash with reports that the national oil major was ending its exclusive purchase agreement with Dangote Refinery, so other marketers could buy petrol directly from the refinery.
This is in line with the move by the oil company to fully deregulate the industry in line with the Petroleum Industry Act (PIA).
There are reports that the NNPC Ltd outlets in the Central area of Abuja, the Federal Capital Territory, adjusted the pump price of petrol to N1,030.
At the station, Glory Okoye, a customer who spoke to Premium Times, said: “This is funny; I just noticed that the pump price has changed from N897 to N1, 030.”
At several other outlets in the Wuse and Lugbe areas of the capital city, this newspaper confirmed that the pump price equally jumped to N1, 030 as motorists and commuters grumbled amid the uncertainty.
In Akute, Ogun State, it was observed that the NNPC outlets were shut against motorists who formed a long queue along the Akute-Alagbole Road.
As of 10.41 a.m. in Ibadan, Oyo state, Premium Times found that a litre of petrol was being sold at N1,050 in some independent stations while some sold for N1,120.
Commuters to pay more as NNPC adjusts fuel price to N1,030/litre
However, the (Nigeria Labour Congress) has demanded an immediate reversal of the fresh fuel price hike in order not to deepen the already existing poverty among Nigerians
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…Customs auctions
Flagging off the auctioning of the impounded fuel in Yola, CG Adeniyi said since the establishment of Operation Whirlwind in collaboration with the Office of the National Security Adviser (ONSA), the operations has continued to make giant strides in its activities, leading to increased seizures of smuggled PMS across multiple borders and curbing illegal exportation of petroleum products across the country.
Represented by Deputy Comptroller General in charge of Enforcement, Investigations and Inspections, Olaniyi Olagunji, the CG further explained that the latest phase of Operation Whirlwind led to seizure of 2 trucks of 33,000 litres capacity each, filled with PMS intended to be smuggled, 1,046 jerrycans of 25 litres capacity each, filled with PMS intended to be smuggled, 12 drums 0f 200,000 litres capacity each totally over 94.550 litres with the duty pay value of N155,157,560million hence the need to auction it to the public at a control price of N630 per litre to ease the suffering of the people.
The customs boss said there was a stakeholders’ meeting in Abuja, attended by various stakeholders, including the ONSA, NCS, Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), and other security agencies such as the Nigerian Army, the Nigerian Police, the Nigerian Security and Civil Defence Corps (NSCDC) as well as the Independent Markets Association of Nigeria (IPMAN), and Petroleum Tanker Drivers (PTD), among others, where new strategies in the fight against smuggling activities were adopted, warning economic saboteurs to repent in their own interest.
The CG further reiterated the commitments of the Service to engage with local communities to raise awareness on the importance of compliance with regulations in order to rid the country of smuggling activities.
He said the Service remained steadfast in its mandate of protecting Nigeria borders, facilitating legitimate trade and supporting the growth of the economy for the benefit of all Nigerians.
Adewale further called on all stakeholders and the general public to continue to supports their efforts, adding that they “cannot achieve success alone without the support and collaboration of law enforcement agencies, community leaders and citizens, hence the need for the public to be vigilant and assist them with information so that the benefit of fuel price deregulation will fully be utilised by Nigerians.”
On his part, Comptroller Adamawa/ Taraba Customs Command Bashir Garba Bature said smuggling activities were jeopardising the economic stability ,national security and wellbeing of the country.
He called for the need for all hands to be on deck to tackle the challenges.
…NLC warns on latest price increase
In a related development, the NLC has called for the swift reversal of the fresh fuel price hike, saying the previous increases had not produced any positive result.
NLC President Joe Ajaero said this in a statement, a copy of which was obtained by Blueprint in Abuja Wednesday.
He said: “We are dismayed by the latest increase in the pump price of petrol. It looks like the only thing this government is known for is the increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.
“Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly. We challenge the government to go to the drawing board and present us with a blueprint for inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.
“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities. It will further deepen poverty as production capacities dip, and more jobs lost with multidimensional negative effects.
“In light of this, we urge the government to immediately reverse this rate hike as previous increases did not produce any good results. People only got poorer. But more fundamentally, the government should be bold enough to tell Nigerians in advance the destination it wants to take the country.”
…Analysts warn of economic impact
Meanwhile, economic analysts have voiced concerns over the broader implications of the latest price increase.
Before the new price increase, the NNPC Ltd was the sole purchaser of petrol from Dangote refinery.
A transporter simply known as Udoka told Blueprint that the new increase by the NNPCL came as a surprise to many of his colleagues who were still struggling with the last price increase.
He said: “The implication is that commuters should be prepared from tomorrow to pay more. Even though, I am not happy with what is happening, anybody that boards my vehicle tomorrow will pay a new fare.
“My fare now is that the price of food stuff will also increase. I don’t know how we are going to survive this.”
Following the latest increase, long queues were observed at the NNPC stations Lagos as motorists awaited fuel sales.
This is the second fuel price hike by NNPCL in the past two months, with the latest increase reportedly tied to the company’s withdrawal as an intermediary in the Dangote Refinery supply deal.
The NNPCL had previously absorbed a subsidy of N133 per litre, purchasing petrol from Dangote at N898.78 per litre and selling it to marketers at N765.99 per litre.
However, this arrangement has become unsustainable, according to NNPCL officials.
Fuel queues, which have plagued major cities such as Lagos, Abuja, and Ogun in recent months, remained a common sight despite the price increase in September.
In some northern states, petrol prices had already surpassed N1, 000 per litre, according to reports from Nairametrics.
A senior energy analyst, Dr. Ifeoma Nwosu, noted that the ongoing deregulation and removal of fuel subsidies, while necessary for long-term market stability, were having severe short-term effects on consumers.
“The fuel subsidy removal, combined with the inability of the government to stabilize supply to marketers, has resulted in progressive price hikes. This is pushing the average Nigerian into deeper financial hardship,” she said.
According to Nwosu, the government’s approach of letting market forces dictate prices without a comprehensive plan to address distribution inefficiencies could lead to even more severe economic disruptions.
“We’re already seeing the effects in the transportation sector, and soon, other industries that rely heavily on petrol will pass these costs onto consumers,” she added.
Energy consultant, Adewale Taiwo, echoed similar concerns, stressing that NNPCL’s exit as an intermediary in the Dangote Refinery deal could worsen market volatility.
“Without the NNPCL absorbing some of the cost differences, marketers are free to negotiate directly with the refinery under a ‘willing buyer, willing seller’ model, which will likely cause more price fluctuations,” Taiwo explained.
For many Nigerians, the continuous rise in fuel prices has translated into increased financial strain. Public transport fares, goods, and services have all surged in response, affecting low-income earners the hardest.
Businesses that rely on fuel for operations, such as logistics companies and small-scale manufacturers, are also grappling with the additional costs, which could stifle economic growth.