The Nigerian National Petroleum Company Limited, NNPCL, has increased the pump price of Premium Motor Spirit, PMS, commonly known as petrol, across its retail outlets nationwide.
The development follows recent changes in the company’s role in petroleum distribution.
In Abuja, the capital city, NNPCL fuel stations have raised the price of petrol from N897 per litre to N1,030 per litre amid long queues.
In Lagos, the price of petrol has also surged from N885 per litre to N998 per litre, with many motorists queuing at filling stations to buy the product.
In the South East, South South, North East, and other South West States, the prices are N1,045, N1,075, N1,070, and N1,025 respectively.
This development happened just 24 hours after Daily Trust reported a potential increase in fuel prices, which was tied to NNPCL’s exit as a middleman in the petrol purchase deal with Dangote Refinery.
The NNPCL’s decision to withdraw from its role in subsidising the price gap between Dangote Refinery’s facility price and the retail price marks a significant shift towards full deregulation of the petroleum market.
Previously, the national oil company absorbed a subsidy of N133 per litre. Moving forward, marketers will negotiate prices directly with the Dangote Refinery under a “willing buyer, willing seller” arrangement, a practice similar to what is done for deregulated products such as diesel and kerosene.
Speaking to Premium Times, an NNPCL official stated, “We can no longer continue to bear that burden,” referring to the financial strain the subsidy system had imposed on the company.
In September, Devakumar Edwin, Vice President at Dangote Industries, announced that the refinery, which has a capacity of 650,000 barrels per day, had begun processing petrol.
Initially, the NNPCL acted as the sole buyer, but recent changes now permit independent marketers to engage directly with Dangote for fuel purchases.
The price hike follows weeks of negotiations between the NNPCL and Dangote Refinery over the cost of petrol.
On 15 September, the NNPCL announced that petrol was being purchased from Dangote at N898 per litre. However, the refinery disputed this claim, describing it as “misleading and mischievous.”
Nonetheless, the NNPCL later set estimated pump prices at N950 per litre in Lagos and N999 per litre in Abuja based on the Dangote refinery’s price for its petroleum products.
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