Northern States In Nigeria Increase Fuel Cost; Blame It On Transport Cost

Oil marketers have increased fuel prices in several northern states, including Niger, Benue, Kano and Plateau, blaming the high transportation cost.

In Niger, most fuel stations have increased the price from N617 to N640. The city of Minna in Niger has a fixed price of N650. In Benue, the price was between N655 and N660 per liter, while in Kano, it was selling between N660 and N670 per liter Sunday.

The Independent Petroleum Marketers Association of Nigeria's (IPMAN) chief Ukadike Chinedu said most independent marketers import Premium Motor Spirit (PMS), also known as petrol, from coastal areas.

"So, trucks travel several kilometers to come and get products from these coastal areas and distribute them to the far North and other distant regions," he said, Punch reported. "We have problems associated with logistics."

However, Chinedu admitted that logistics is not the only issue they face. Forex rate and diesel prices are also key issues that forced them to hike prices. Chinedu noted that diesel trucks were used to transport petrol to gas stations. The cost of a liter of diesel was about N1,200.

He also blamed the bad roads, saying trucks take almost one week to move the products to the retail outlets.

Mohammed Shuaibu, secretary of IPMAN, said the fuel business is becoming stressful and expensive, while urging the government to start operating more refineries so that oil marketers don't have to rely on imports.

"The price of petrol will continue to fluctuate as far as we use forex to import it. We all know that there have been fluctuations in the forex rate. So, the main solution is domestic refining of crude and until we get our refineries working, we will continue to experience these challenges," he said.

The skyrocketing petrol prices have negatively impacted people's lives. President Bola Ahmed Tinubu announced the scrapping of a fuel subsidy on May 29, which shot up the price from N195 per liter to N600 per liter.

In July, transport company Uber increased its fares to ensure that drivers can cover their fuel costs and deal with inflation in the wake of the subsidy removal. Apart from the increase in fuel prices, the government also implemented a 7.5% VAT on diesel.