The Federal Government is planning to fully remove its control on petrol pricing and allow market forces to determine pump prices across the country. This plan, which falls under its “liberalisation” policy, is raising concerns among oil marketers who say it could lead to higher fuel prices if the Nigerian National Petroleum Company Limited (NNPC Ltd.) stops selling petrol at a lower cost.
Marketers worried over price increase
According to the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), fuel prices may go up when NNPC Ltd. fully exits fuel imports. Its president, Benneth Korie, said NNPC’s current price is still lower than what others can offer. If that changes, Nigerians may pay more at the pump.
Only NNPC still imports petrol
Though the fuel subsidy is officially removed, NNPC Ltd. remains the only company importing petrol and selling it at a reduced rate. Other marketers have stayed out of the market, saying they cannot match the price set by NNPC.
Foreign exchange a major barrier
Many marketers point to foreign exchange as a big reason why they can’t join the petrol import business. With the naira’s value still unstable, importing fuel is too risky for private players.
Free market may bring competition, or chaos
Supporters of full liberalisation argue that opening the market will boost competition, create jobs, and attract private investment. However, experts warn that it must be done with proper planning, clear regulations, and reliable supply chains. Without these, the market could face chaos, with unstable prices and possible fuel shortages.
Government still silent on next steps
Despite public debates and concerns, the federal government has yet to officially announce when full liberalisation will begin or how it plans to manage the change. Until then, many Nigerians remain unsure about the future of fuel prices.