Nigeria’s Coalition for Energy Reforms and Good Governance Advocacy is pushing for change in the country’s fuel pricing system. They’re urging the Federal Government to scrap “hidden levies” on locally refined petrol from the Dangote Petroleum Refinery, which they believe are driving up costs and making fuel unaffordable for Nigerians.
The Coalition argues that these secret charges, imposed under various names like inspection fees and margins regulated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), are unjustifiable ¹. Additional charges from the Nigerian Maritime Administration and Safety Agency (NIMASA) are also a concern, as they apply to the crude supply chain and shouldn’t affect locally refined petroleum products.
READ ALSO: Backward Integration: Dangote Group to Commence Crude Oil Production in Q4 2024-Report
Rising pump prices across the country are causing distress among consumers who expected local refining to stabilize petrol prices. The Coalition believes that removing these hidden levies could lower petrol prices to around N400 per litre, making fuel more accessible to the average Nigerian.
The Coalition is advocating for a comprehensive review of all levies in the petroleum product production and supply chain, as well as transparency in disclosing the actual impact of these charges to the public. This comes as Nigeria navigates its post-subsidy economy, where transparency in fuel pricing and reduced bureaucratic levies are crucial for ensuring energy affordability.
READ ALSO: FG Directs IPMAN to Start Lifting Petrol Directly From Dangote Refinery
Nigeria’s Energy Transition Plan aims for net zero by 2060, and the country is working to balance support for local refineries with protecting citizens from rising fuel costs . The removal of subsidies earlier this year has led to increased fuel prices, higher food and transportation costs, and a downturn in Nigeria’s economy
To alleviate financial burdens on households and businesses, the Coalition emphasizes the need to prioritize the removal of unnecessary fees. This would help make energy more affordable for Nigerians and support the country’s economic growth.
