Fuel pump price jumps 28% to N770 per litre – officially, but higher in reality
By Jeph Ajobaju, Chief Copy Editor
Average fuel price officially jumped 28 per cent at the pump year-on-year (YoY) to N770.54 per litre in July 2024 from N600.35 in July 2023, according to the latest data released by the National Bureau of Statistics (NBS).
In reality, however, pump price in the past couple of months has risen to between N700 and N1,000 per litre across the country and currently sells for N780 per litre in most parts of the South West.
NBS Petrol Price Watch for July 2024 shows the average retail price rose 2.72 per cent from N750.17 in June 2024.
Highest price per state
- Katsina – N950.00
- Jigawa – N903.08
- Benue – N846.95
Lowest price per state
- Kwara – N650.00
- Edo – N669.75
- Akwa Ibom – N673.75
Petrol stations owned by the Nigerian National Petroleum Company (NNPC) officially sell at N617 per litre, other retailers officially sell at N700 and above.
Bola Tinubu announced the removal of fuel subsidy at his presidential inauguration on 29 May 2023 which hiked pump price from N238 per litre to more than N600 overnight, and has kept on rising.
NNPC to spend N6.88tr on fuel subsidy by December 2024
Despite Tinubu’s grandstanding and misinformation, the NNPC has disclosed it is being forced by circumstances to continue funding subsidy which will amount to N6.884 trillion by December 2024.
It emerged on Monday that Tinubu has approved a request by the NNPC to divert the 2023 final dividends due to the Federation Account to pay for fuel subsidy.
He also approved the suspension of the payment of 2024 interim dividends to the Federation Account in order to augment NNPC cash flow, according to sources in Aso Rock quoted by TheCable.
Besides, the NNPC informed Tinubu it will not be able to remit taxes and royalties to the Federation Account for now because of fuel subsidy payments, which it termed “subsidy shortfall/FX differential”.
It estimated the cumulative subsidy bill from August 2023 will rise to N6.884 trillion by December 2024, preventing it from remitting N3.987 trillion in taxes and royalties to the Federation Account.
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