REWIND: 12 days ago, NNPC said there’d be no fuel price hike in March

While men — and women — slept, the Petroleum Products Pricing Regulatory Agency (PPPRA) quietly increased the pump price of petrol to N212.61 per litre.

Nigerians woke up on Friday to the news that the pump price of petrol had been increased — despite assurances from the Nigerian National Petroleum Corporation (NNPC).

In a February 28 statement, the NNPC told Nigerians that there would be no petrol price increase in March.

The statement, which was signed by Kennie Obateru, assured citizens that the NNPC had over 40 days of petrol stock.

What NNPC told us

Contrary to speculations of an imminent increase in the price of Premium Motor Spirit (petrol) in the country, the Nigerian National Petroleum Corporation (NNPC) has ruled out any increment in the ex-depot price of petrol in March 2021.

A press release by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, stated that the Corporation was not contemplating any raise in the price of petrol in March in order not to jeopardize ongoing engagements with organized labour and other stakeholders on an acceptable framework that will not expose the ordinary Nigerian to any hardship.

PRESS RELEASE:#NNPC Says No Increase in Fuel Price in March
…Cautions against Hoarding, Panic Buying

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Thread… pic.twitter.com/9a74Fsinxh

— NNPC Limited (@nnpclimited) February 28, 2021

NNPC also cautioned petroleum products marketers not to engage in an arbitrary price increase or hoarding of petrol in order not to create artificial scarcity and unnecessary hardship for Nigerians.

The corporation further stated that it has enough stock of petrol to keep the nation well supplied for over 40 days and urged motorists to avoid panic buying.

Why is the government increasing petrol price?

Nigeria has deregulated the pricing of petrol.

Simply put, when the price of crude oil increases, you can expect an increase in petrol price and when the crude oil price drops, petrol price should also drop.

The government began this system in March 2020 when it announced that it could no longer afford to subsidise the price of petrol.

At the time the system was adopted, crude oil prices were in the $20 region and that was why there was a reduction in petrol price.

The N162 pump price was set when crude oil traded just above $43 per barrel.

As of 8:30am on Monday, the price of Brent crude, the benchmark for Nigeria’s crude grade, was $69.12 per barrel.

It is projected that the price will rise to $80 by the third quarter of 2021.

Will there be another petrol price increase this year? Most likely — let all eyes be on the market.