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How to deal with increase in fuel prices

How to deal with increase in fuel prices

Fuel prices have recently become a point of contention for many Nigerians. The cost of the commodity continues to rise, making it increasingly difficult to get. Nigerians rely on petroleum to power their cars and homes, so it’s an issue when they can’t find it because of the price. 

Nigeria is the world’s sixth-largest petroleum exporter. Petrol is one of the most important commodities defining its economy. As a result, even minor changes in the price of gasoline can have a significant impact on the economy. Crude oil is one of the most important factors in the country’s economy.

Fuel price in Nigeria today

Despite being the world’s sixth-largest fuel exporter, the country has had a long and tumultuous relationship with the oil sector. This has also resulted in the fluctuation in fuel prices since 2012. There have been rumors about fuel costs over the years. 

The public has not reacted favorably to the price increases, as the steady rise in prices impacts their enterprises and daily life.

The official fuel pump price is now set at N165. However, based on current market statistics, the commodity sells for between N165 and N170 per litre. Taraba, Borno, and Katsina have the lowest fuel prices, with N157.33, N160.1, and N160.86, respectively, while Cross River, Abia, and Benue have the most expensive fuel prices, with N170.5, N171.88, and N183.29 respectively.

Common uses of fuel in Nigeria

Petrol is one commodity that is widely used in the country. Some of the common uses of fuel are:

For vehicles

All over the world, the most common fuel use is to power our vehicles, whether cars, buses, or motorcycles. It is a necessity that can not be avoided.

For generators

Since the power supply in the country is still very bad, coupled with other situations like the national grid constantly failing. Nigerians no longer have faith in the power system because it can disappoint at any time hence the need for generators. The fuel price hike will be a concern for generator users like myself.

For industries

Petroleum is also used to produce other essential commodities Vaseline, pomade, and even in the glue-making factories. So the increase in fuel prices will affect their business as well.

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History of petrol price change in Nigeria

In the early 1960s and 70s, it was recorded that the price of fuel ranged from 6Kobo to 9Kobo per liter. Here is a look at how the price of fuel has increased over the years

  • Gowon- from 6Kobo to 8.45K
  • Murtala Murtala- 8.45K to 9K
  • Obasanjo- 9K to 15.3K
  • Shagari- 15.3k to 20k
  • Babangida- 20k to 39.5k
  • Babangida- 39.5k to 42k
  • Babangida- 42k to 60k for private vehicles 
  • Babangida- 60k to 70k
  • Shonekan- 70k to N5
  • Abacha- N5 to 3.25k
  • Abacha- 3.25k to N15
  • Abacha- N15 to N11
  • Abubakar- N11 to N22
  • Obasanjo- N22 to N75
  • Yar’Adua- N75 to N65
  • Johnathan- N141
  • Johnathan- N97
  • Johnathan- N87
  • Buhari- N87 to N165

Proposed fuel prices in Nigeria

Suppose the National Economic Council’s (NEC) ad-hoc committee’s suggestion was accepted, the Federal Government would have increased the price of premium motor spirit (PMS), also known as petrol, to N302 per litre. In Nigeria, the price of fuel is now between N165 and N170 per litre. 

The NEC ad-hoc committee advising the Nigerian National Petroleum Corporation (NNPC) on the right pricing of PMS in Nigeria had made the recommendations. Nasir El-Rufai, the Governor of Kaduna State and the committee’s chairman, presented the findings in November 2021.

The Nigeria Governors’ Forum (NGF) advocated N385 per litre in May 2021, but stakeholders, including the Federal Government rejected it.

The committee has since reconsidered and rejected the recommendation. 

The committee proposed that PMS prices be fully deregulated by February 2022, raising the price by around N165/175per litre, according to the new report. 

It was also suggested that all stores should post PMS prices on a dedicated website and smartphone app at all times and that price changes should be posted within 15 minutes of the change.

ALSO READ: Fuel scarcity: Marketers reveal why petrol will now sell above ₦179 per litre

How to deal with an increase in fuel price 

With the hike in fuel prices, many people are beginning to wonder if they or their businesses could thrive in the country. Many people are considering moving their families and businesses to nearby countries with constant power supply and cheaper fuel prices.

Meanwhile, some are just simply looking for ways to deal with the fuel price without having to leave their beloved country. If you are one of those people, then here are some tips for dealing with the fuel price in Nigeria.

Have other alternatives to fuel

With the technological advancement in the world, one must not focus only on fuel. There are many other more suitable and economical power sources, such as solar energy, Inverters, and many more. This can save you the stress of worrying about fuel to power your generators for your businesses and homes.

Use fuel saving appliances and vehicles 

If you insist on using fuel, make sure that vehicles and appliances consume less fuel so that you don’t have to spend so much on fuel.

Have an alternative form of transportation 

In addition, the government should work hard to revitalize the railways. They should also empower and encourage firms in Nigeria that deal with electric mobility (cars, motorbikes) and micro-mobility (scooters). If Nigerians had other transportation options, the debate over fuel subsidy elimination might not be as loud.

ALSO READ: Marketers disclose 3 reasons for current petrol scarcity

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Esther is versatile writer who thrives in writing top-notch long-form articles. She enjoys research and has an eye for details. She's currently a writer at BlackDot Media.
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