As fuel scarcity worsens, Atiku knocks Tinubu over subsidy, refineries delay

• Average petrol price hits N771 amid worsening nationwide scarcity
 • Naira crude sale to Dangote, others begins October

Former Vice President Atiku Abubakar has accused President Bola Tinubu’s administration of covertly continuing the fuel subsidy on Premium Motor Spirit (PMS) despite previous claims to the contrary.

THE NBS PMS price watch highlighted a 28.35 per cent increase in petrol prices compared to last year, where the average price stood at N600.35 per litre. The report also noted a 2.72 per cent rise from June 2024’s average cost of N750.17 per litre.
 
Regional disparities in fuel prices were also evident in the NBS data, with Northern states experiencing the highest increases. Katsina State recorded the steepest average retail price at N950.00 per litre, followed by Jigawa at N903.08 and Benue at N846.95.
 
In contrast, Kwara, Edo and Akwa Ibom states had the lowest prices, at N650.00, N669.75 and N673.75, respectively. The report further indicated that the North West had the highest average retail price of N820.10 per litre, while the South South had the lowest at N678.30 per litre.
 
This surge in petrol prices has exacerbated the already dire fuel scarcity situation, particularly in Lagos and Abuja, where long queues at filling stations have become a common sight.
 
Despite assurances from NNPCL that efforts were being made to restore normalcy, the situation has deteriorated. Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, attributed the supply shortages in parts of Lagos and the Federal Capital Territory (FCT) to distribution challenges.

However, as the scarcity continues to grip the nation, the impact on transportation costs and overall economic activity is expected to intensify.
MINISTER of Finance and Coordinating Minister of the Economy, Wale Edun, announced the naira sale during a meeting with the Implementation Committee, yesterday, in Abuja.
 
According to a post on the official X (formerly Twitter) page of the finance ministry, the meeting was to review progress on key initiatives.

At the meeting, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the African Export-Import Bank to ensure smooth implementation.
  
The post reads, “The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”
 
Also, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “The first PMS delivery from Dangote is expected next month under existing agreements.”
 
It also stated that updates were provided on the Port Harcourt and Dangote Refineries, with significant production increases expected from November 2024.