Filling stations owned by the Nigerian National Petroleum Corporation Limited (NNPCL) have significantly raised the pump price of fuel. In Abuja, the price per litre has jumped from N897 to N1,030, Daily Trust reports.
According to the report, the NNPC outlet in Maitama observed long queues of motorists waiting to purchase fuel, amidst complaints about the price increase. At another NNPC station in Gudu, motorists continued to wait for attendants to begin selling fuel.
When asked by our reporter if the station was out of stock, an attendant explained that they had fuel but were awaiting adjustments to the meter to reflect the new price. “N1,030 per litre,” she confirmed.
In Lagos, the price has also surged, with fuel previously sold at N885 per litre now priced at N998, resulting in similar long queues.
This price increase comes just 24 hours after media outlets reported on a likely rise due to NNPCL’s exit as a middleman in the Dangote Refinery purchasing agreement. As a result, the national oil company will no longer bridge the price gap between the refinery’s price and what is sold to retailers, having absorbed a subsidy of N133 per litre until now.
The NNPCL’s decision marks a significant shift towards a fully deregulated oil market. Moving forward, marketers will negotiate petrol prices directly with the Dangote Refinery under a “willing buyer, willing seller” arrangement, aligning with how other deregulated products like diesel and kerosene are handled.
In September, Devakumar Edwin, Vice President of Dangote Industries, announced that the 650,000-barrel-per-day refinery had begun processing petrol, with the NNPCL initially serving as the sole off-taker. However, recent adjustments now allow independent marketers to engage directly with Dangote.
“We can no longer continue to bear that burden,” an NNPCL official told Premium Times, emphasizing the financial strain of the subsidy system.
