Petrol stations operated by the Nigerian National Petroleum Corporation Limited (NNPCL) have raised the fuel pump price.
On Wednesday, reports revealed that the fuel price, which was previously N897 in Abuja, the nation’s capital city, has now increased to N1,030.
Journalists who visited the NNPC station in Maitama noted that motorists were lined up to purchase fuel, despite expressing dissatisfaction.
At another NNPC location in Gudu and Abuja, drivers were seen waiting for attendants to begin sales.
When inquired about the station’s fuel availability, an attendant told Daily Trust that fuel was indeed available, but management was awaiting adjustments to the meter to reflect the new price.
When asked about the current price, she stated, “N1,030 per litre.”
In Lagos, the price of fuel has risen from N885 per litre to N998, resulting in long queues at the stations.
This price increase follows a report from Daily Trust indicating a potential rise in pump prices due to NNPCL’s withdrawal as an intermediary in the Dangote Refinery purchasing agreement.
Consequently, the national oil company will no longer bridge the price difference between the refinery’s pricing and the retail price, having previously absorbed a subsidy of N133 per litre.
The decision made by NNPCL signifies a notable shift towards a completely deregulated oil market.
From this point forward, marketers will negotiate petrol prices directly with the Dangote Refinery based on a “willing buyer, willing seller” framework consistent with the established practices for other deregulated products like diesel and kerosene.
In September, Devakumar Edwin, Vice President of Dangote Industries, announced that the refinery, which has a capacity of 650,000 barrels per day, had commenced petrol processing, with NNPCL initially serving as the exclusive off-taker.
However, recent changes now permit independent marketers to interact directly with Dangote.
“We can no longer continue to bear that burden,” an NNPCL official told Premium Times, highlighting the financial strain of the subsidy system.
