Oil Price Hike: Nigerians Bear the Brunt of NNPCL’s Inefficiencies - NECA

The Nigerian Employers’ Advisory Association (NECA) has strongly criticized the Nigerian National Petroleum Corporation Limited (NNPCL) for the recent increase in the retail price of Premium Motor Spirit (PMS). According to NECA, this price hike, which has seen fuel prices soar to N855 per litre at NNPCL retail outlets, is a direct consequence of the corporation’s inefficiencies, with ordinary Nigerians bearing the brunt.

Adewale-Smatt Oyerinde, the Chief Executive Officer of NECA, expressed deep concern over the latest price adjustments in a statement issued on Sunday in Abuja. He described the hike as not only alarming but also dangerous, particularly in a country where many are already struggling with economic challenges.

Oyerinde noted that the expectation following the completion of the Dangote Refinery and the anticipated commencement of operations at the Port Harcourt refinery was that the suffering of Nigerians would be alleviated, and fuel prices would gradually decrease. However, the opposite seems to be the case.

“The new petrol prices are seen as making Nigerians pay for NNPCL’s inefficiencies,” he remarked, highlighting the failure of the government to address the fundamental issues plaguing Nigeria’s four refineries. Despite these refineries, the country remains heavily reliant on fuel imports, which continues to be a significant burden on its citizens.

Oyerinde urged the government to rethink its approach, suggesting that it should take decisive actions to address the persistent poverty and weak governance that exacerbate the country’s economic challenges. He also pointed out that the increase in administrative costs associated with NNPCL’s operations only adds to the burden on the average Nigerian.

This development comes on the heels of the official announcement by the Dangote Refinery of its first production of Premium Motor Spirit (petrol). Aliko Dangote, President of the Dangote Group, has indicated that the price of petrol from the refinery will be determined by the Federal Executive Council.