Public dissatisfaction grows over NNPC fuel pricing and transparency concerns — Survey

…Public dissatisfaction grows over NNPC fuel pricing and transparency concerns — Survey

NNPC should be dissolved. I truly do not know what they represent or the value they add asides siphoning money according to a survey carried out by BusinessDay.

Some argue that Nigerians should shift their focus from fuel prices, which would fluctuate daily in a true free market, and instead prioritize governance reforms. They believe that improved governance could strengthen the Naira and reduce fuel costs, but corruption, particularly at the federal level, undermines trust and economic stability.

BusinessDay September TalkExchange poll results provide insight into public sentiment regarding the Nigerian National Petroleum Corporation’s (NNPC) fuel purchase and pricing strategies, particularly concerning Dangote refineries.

The responses indicate a high level of awareness about the NNPC’s fuel purchase from Dangote, with 86.5% of respondents acknowledging they were aware of the issue, while a smaller percentage either did not know or were somewhat aware.

When asked about the price disparity between NNPC’s purchase price of ₦898.78 and the estimated selling price of ₦950.22, a majority of 62.2% of respondents found the price disparity to be unjustified and unreasonable. Meanwhile, 21.6% believed it to be justified and reasonable, and 8.1% expressed a neutral stance with no opinion.

In terms of NNPC’s pricing strategy compared to other marketers purchasing fuel at ₦765.99 per litre, nearly half of the respondents (48.6%) felt that NNPC’s price was too high and uncompetitive. A smaller group (18.9%) suggested the price should be reviewed to match other marketers, while only 13.5% considered the pricing fair and in line with market conditions.

Regarding whether NNPC should be the sole buyer of fuel from Dangote refineries, 70.3% of respondents argued that other buyers should be allowed to purchase fuel, reflecting a preference for more market openness. Only 13.5% supported NNPC being the sole buyer, and the remaining respondents believed it depended on the terms of the agreement.

On the issue of whether NNPC should source fuel from other refineries besides Dangote’s, 59.5% agreed to promote competition, indicating a strong preference for competition in the fuel market. Another 27% supported that Dangote’s refinery should be the primary supplier. while 8.1% of respondents believed they should be a mix of local and international suppliers used

Trust in NNPC’s transparency regarding fuel pricing and procurement was notably low, with 81.1% of respondents expressing distrust. Only 10.8% indicated trust and a small number were somewhat trusting but with reservations.

The open responses provided additional insights into public perceptions of how NNPC should handle its fuel procurement process to ensure fair pricing. A common theme across many responses was the call for transparency, with respondents advocating for open and clear declarations of the cost of fuel procurement. Several people mentioned the need for competition, arguing that NNPC should not act as both a competitor and regulator, and some suggested that all marketers should have access to purchase directly from Dangote.

“The NNPC as a limited liability company is a competitor and cannot be a regulator. Hence, competition should be the driving factor in the procurement process.”

“It is only in Nigeria we prefer to export raw product instead of adding value to attract the need growth and offer employment to the youths.”

“NNPC should manage its fuel procurement process by not selling fuel to Black marketers and make sure that their fuel is available for motorist, tricycle riders, and cab drivers.”

“Every Marketer should have direct access to buy from Dangote and decide on their individual pricing.”

“Supply crude oil to Dangote in Niara with some room for slight discounts so that the purchase price of petrol will be lower for Nigerians. The disvount is possible becuase of lower freight charges and closer market.”

“There is no definition of ‘fair’ pricing. Nigerians need to get used to the idea that the price of fuel will change DAILY if there is really a free market as it does in the USA and EU. Nigerians need to get off the focus on fuel price and care more about general governance of the Federal Government. If the Federal Government ran correctly the Naira might appreciate and the price of PMS would fall. But as the Federal Government is corrupt to the core (Seyi Tinubu and Lagos Callabar highway is a good example) there is no way for anyone to trust it or for the Naira to appreciate.”

Other suggestions included the need to revive the country’s refineries to reduce dependence on imports and ensure that fuel is produced domestically. Some respondents argued for the dissolution of NNPC, while others suggested that fuel procurement be handled through private channels to allow for greater market competition.

In response to the question about how to improve transparency in fuel pricing and procurement, many respondents reiterated the need to fix Nigeria’s refineries and advocated for full deregulation of the sector. Several suggested that NNPC should withdraw from fuel distribution altogether, and there were repeated calls for the public to be educated about the factors that influence fuel pricing, such as global market conditions and freight charges. Transparency about crude allocation and pricing mechanisms was also emphasized as key to building trust and ensuring fair pricing.

“Let use only NAIRA as means of fuel exchange.”

“Share sourcing mechanisms, locations, costs, and models used to determine pricing, so it can be verified.”

“FG should by all account get state-owned refineries working or privatise them to ensure market competitiveness and stability.”

“NNPC should get out of fuel distribution and let everything about fuel be private.”

“Fix the other refineries. Importation should be last resort if the local refineries cannot meet demands. Clarity on the existence or absence of subsidy should be published. And the purchase price and their margin should be made transparent.”

“Educate Nigerians about the price of the commodity called PMS in New York Harbour, Rotterdam and Singapore and show them how to convert that price in gallons or litres into Naira. That will be the minimum price they should pay if subsidy is over. Dangote is not a charity. He is a schemer who always expects a fixed market like sugar and cement to make his profits. He will only sell at the prices he sees for Rotterdam, New York and Singapore which are transparent prices. Then it needs to be explained that the price of PMS may change every single day as it does in the USA and EU. There is no such thing as a flat or fixed price for PMS in economies that have free markets for the stuff.”

“The government should do something about fuel because it is the root of hunger in Nigeria and as the result of that people are dieing every minute. Thanks.”

“I urge the oil marketers and other relevant stakeholders to come together and agree on a fixed price range between #600 to #730 per liter.”

“Transparency, let us know how much crude was allocated as at when and at what price. This will help in setting a fair price all will accept.”

“Allow marketers purchase directly from Dangote. No NNPC go-between.”

“NNPC have the capacity and capabilities to fix a refinery and sell directly to marketers. This way competition will come in and the price will be automatically set.”

Take a look at previous poll results.