By Emmanuel Sixtus
It’s been the prayer of Nigerians to see the much-needed positive change in the price of petrol in the country, as the price influences the country’s economy remarkably.
On November 20, 2024, a positive change happened in Nigeria’s oil market as petrol prices at filling stations across the country started to decrease. This drop is due to lower costs for importing petroleum products and quick actions taken by the Nigerian National Petroleum Corporation (NNPC). The NNPC has recently brought in over 2 billion litres of petrol, helping to keep supply steady and making life a little easier for consumers.
The situation was declared a prayer answered for Nigerians, who now rejoice that the trend will lead to the possibility of lowered inflation and ease the burden of Nigerians.
The fall in fuel prices is a welcome break for Nigerians who have been struggling with high energy costs. Over the past year, changes in the oil market led to sharp increases in petrol prices, which made it hard for families to manage their budgets and impacted small businesses reliant on fuel.
In major cities like Lagos and Abuja, many filling stations have lowered their prices, with some reports showing reductions of up to 15%. This is especially important now, as many people are still feeling the effects of rising oil prices and inflation.
Families know that pump price is the key to a stable economy, as it affects all facets of the economy. With unstable power supply and families relying on generators to power everything, the lowered pump price was a relief.
The NNPC’s decision to import 2 billion litres of gasoline is a smart strategy to keep supply stable during times of fluctuating global oil prices. This move aims to prevent shortages during the festive season and discourage hoarding and price gouging by sellers.
According to sources within the NNPC, the organisation is also partnering with independent marketers to ensure smooth distribution of the imported products across the country. A senior official from the NNPC stated, “We are committed to providing a consistent fuel supply and relief to Nigerians.”
Consistent chain of supply is what is needed to sustain the lowered market prices, and the NNPC is determined to hold onto the effort they have put so far.
Petroleum marketers and industry players have praised the NNPC’s actions. However, some experts warn that these price cuts might not last if global oil prices rise again or if the naira continues to lose value. Industry expert Adedayo Adekunle commented, “This price drop is good news, but keeping it low will depend on necessary reforms in the oil sector, including better local refining.”
Motorists are also feeling hopeful. “It’s been tough running my transport business with high fuel prices, so this reduction is a relief. I just hope it stays this way,” said Abdullahi Musa, a cab driver in Abuja.
While to others, the NNPC cannot sustain the positive news because prices keep going up and coming down because there is no mechanism in place that would lead to stability in the sector.
Beyond immediate relief, lower fuel prices could help the economy as a whole. When energy costs go down, transportation expenses generally decrease, which can lead to lower prices for goods and services. This could help ease the inflation that has affected Nigeria recently.
However, experts believe the government should combine these short-term fixes with long-term plans. Improving the domestic refining sector is essential. Despite having some of Africa’s largest oil reserves, Nigeria heavily relies on fuel imports because its refineries are underperforming.
Lower fuel prices mean transportation will be less costly, and farmers will sell according to what transportation added. Entirely, fuel pump price is the chief determinant of the economic situation of the country.
As the year comes to an end, the NNPC’s ability to keep fuel supply steady and prices low will be crucial. With global oil markets still unpredictable, ongoing collaboration between the government, private sector, and international partners will be key to securing Nigeria’s energy future.
For now, while the drop in petrol prices brings temporary relief, lasting stability in energy costs for Nigerians will depend on significant reforms and investments in the oil sector. Many are celebrating this small but important victory.
Usually in the country, the Christmas period comes with fuel scarcity due to panic buys and planning for the new year, but with the effort of the NNPC, which appears determined to keep supplying, it appears this year will be different.
