A NATION UNDER SIEGE: A CRITICAL ANALYSIS OF PUMP PRICE WAR IN NIGERIA

Abstract

This study fundamentally underscores the current crisis surrounding petrol pricing, which has characteristic volatile interplay between the deregulation policy of subsidy removal and global oil market fluctuations in the country. The aim of the government is to foster competition and reduce fiscal burden but unfortunately the deregulation policy has soared living costs and diminished purchasing power of Nigerians. While the coming of Dangote Refinery into the market has yet to yield expected price reduction, the contributions of Nigerian National Petroleum Company Limited (NNPCL), as pivotal player in the oil sector, raises concerns regarding market domination and its influence on price stability. This analysis focuses on the recent increase in pump price of petrol to over N1000 per litre, resulting in the serious socio-economic implications on Nigerians. The paper investigates the fundamental causes of the ‘pump price war’, which revolves around fuel subsidy removal policy, ineptitudes in the country’s petroleum sector, and the dynamics of international oil market environment. The study employs a qualitative approach using secondary sources to evaluate the interaction between governmental policies, public resistance, and the socio-economic impact of fluctuating fuel prices among Nigerians. This study stresses the urgency for a complete reform of the economic strategy of the country that will address the subsisting challenges posed by the rising fuel costs and ensure the long-term sustainability of energy sector. It emphasizes the need for transparent governance and an effective policy framework to reduce the adverse implications on ordinary citizens of Nigeria and chart a viable avenue for economic and social stability.