Misleading news with claim of falling petrol prices across Nigeria

Nigeria has been facing a shortage of petrol in recent months, leading to long queues at petrol stations. Reports based on a news item published in August claimed that “new” pump prices had made a litre of petrol suddenly 200 naira cheaper. But this is misleading; thanks to the shortage, prices have fluctuated by as much as 30 percent and more between government-owned petrol stations – which are cheaper – and black market vendors who take advantage of thise of the shortages. The reports misrepresented this volatility as a general decline in prices.

“Finally some good news. Gas stations across the country have adjusted their gas prices. Full details in the comments,” reads the caption on a Facebook post after dated August 28, 2024.

The text placed over the image in the post reads: “New Fuel Price: Major Relief as Petrol Stations Reduce Petrol Price by Over N200 – Details Below.”

The post was shared more than 50 times, received 1,700 comments and was published by popular Nigerian blog Legit.Ng, which has 7.7 million followers on Facebook.

In the comments, dozens of users seemed to be incredulous at the news, citing high prices at their local gas stations as the reason.

“I just bought 940 per litre from Issele uku, Delta state,” wrote one person. Another said: “I just bought 930 per litre a few minutes ago.”

The claim also appeared on Facebook here And here.

But the messages are misleading.

No national slash

The accompanying Legit.ng article carries the same headline as the text superimposed over the post’s image: “New Fuel Price: Major Relief as Petrol Stations Reduce Petrol Price by Over N200”

The article states that “petrol stations of major oil traders across the country are offering fuel to Nigerians at as low as N630 per litre.”

“The price is over N200 cheaper compared to N800 to N900 per litre of fuel sold at other filling stations since the fuel shortage started (sic)“, it continues.

The article lists the prices found at various petrol stations in Lagos run by major companies.

But the article made no mention of any official announcement about the drop in petrol prices in Nigeria, nor did it mention by how much each of the stations surveyed had reduced their prices.

No more subsidy

Petrol has historically been subsidised by the Nigerian government. But President Bola Tinubu announced the end of petrol subsidy during his inauguration ceremony in May 2023.

This resulted in a immediate increase in the base price of petrol per litre from 190 naira to 568 naira (archived here).

But fuel shortages have thrown prices into disarray, allowing black market traders to charge more than 900 naira for a litre – about a third more than the going rate at petrol stations owned by the Nigerian National Petroleum Corporation Limited (NNPCL) and private sellers (archived here).

The Legit article did not explain the price difference and the headline gave the impression that fuel costs had suddenly dropped.

Tank full, not empty

On September 4, 2024, the gas stations owned by the NNPCL will have their signs changed to an increase in the base price of petrol up to 855 naira (archived here).

According to AFP, private suppliers were already selling fuel at higher prices than the NNPC, as much as 1,200 naira per litre.

Government advisor Bayo Onanuga defended the decision to increase fuel prices as a way to help the NNPC, which he said was struggling to make its contribution to the federal accounts (archived here).

He said on X that once the private refinery in Dangote starts producing fuel for the local market, Nigerians would experience relief.

“There are no easy choices,” Onanuga said. “Something has to be done to ensure the survival of NNPC, to keep the engines of government running and the petrol flowing.”