Nigerian National Petroleum Company Limited (NNPC Ltd) has raised the price of petrol in Abuja by 14.8%, pushing the cost of Premium Motor Spirit (PMS) to N1,030 per litre, up from N897. This price increase marks the second hike in less than a month, following a similar adjustment in September, when the price was raised from N615 to N897 per litre.
The rise in petrol prices comes shortly after the NNPC Ltd ended its exclusive purchase agreement with Dangote Refinery, allowing other marketers to purchase fuel directly from the refinery. “The termination of this exclusive agreement opens the market for other marketers to negotiate prices directly with Dangote Refinery,” an industry source explained. This shift is part of Nigeria’s ongoing efforts to fully deregulate the petroleum sector, moving towards a more competitive market.
In Lagos, the price of petrol has also surged. Retail outlets of NNPC Ltd are now selling the product at N998 per litre, up from N855 per litre in September. Some private filling stations in Lagos have set prices even higher, with reports of fuel being sold at around N1,003 per litre. A particular NNPC station in Abuja’s Wuse Zone 4 was observed selling petrol at N1,003 per litre, in line with the nationwide adjustment.
The price hikes have raised concerns across Nigeria, with many fearing that transportation costs and the prices of goods and services could increase as a result.
Despite the growing public concern, NNPC Ltd has yet to issue an official statement or respond to inquiries about the recent price adjustments. At the time of reporting, efforts to reach NNPC spokesperson OluFemi Soneye for clarification were unsuccessful. The company has remained silent on whether further price increases can be expected in the near future.
The latest developments come just weeks after NNPC Ltd began lifting petrol at Dangote Petroleum Refinery’s gantry, marking a significant shift in the country’s petroleum supply chain. The end of the exclusive purchase agreement means that Dangote Refinery will no longer be required to sell fuel solely to NNPC, but rather to a wider array of marketers who can now negotiate directly with the refinery.
As Nigeria continues to implement the full deregulation of its fuel sector, industry analysts expect further price fluctuations, with the hope that competition will eventually lead to more stability in the long term. However, for now, many Nigerians are bracing themselves for the immediate impact of these price hikes on their daily lives and expenses.
