The Nigerian National Petroleum Corporation Limited (NNPCL) raises fuel prices to ₦1,030/litre in Abuja, ₦998/litre in Lagos
The cost of fuel in Abuja has surges from ₦897 to ₦1,030 per litre.
A visit to an NNPC outlet in Maitama revealed long queues of motorists waiting to buy fuel, accompanied by widespread complaints.
At another NNPC station in Gudu, Abuja, motorists formed long queues as they awaited attendants to start selling fuel.
When inquired if the station was out of stock, an attendant confirmed they had fuel but were waiting for the meters to be adjusted to reflect the new price.
When asked about the price, she replied, “₦1,030 per litre.” In Lagos, fuel increaes from ₦885 per litre to ₦998, leading to long queues at filling stations.
This development follows a report, which suggested a potential pump price increase due to NNPCL’s exit as a middleman in the Dangote Refinery purchase deal.
As a result, the national oil company will no longer bridge the price gap between the facility’s price and the selling price to retailers, previously absorbing a subsidy of ₦133 per litre. NNPCL’s decision marks a significant move towards a fully deregulated oil market. Marketers will now negotiate petrol prices directly with the Dangote Refinery under a “willing buyer, willing seller” arrangement, similar to the practices for other deregulated products like diesel and kerosene.
In September, Mr Devakumar Edwin, The Vice President at Dangote Industries, announced that the 650,000 barrels per day refinery had started processing petrol, initially with NNPCL as the sole off-taker.
Recent changes now allow independent marketers to engage directly with Dangote.
“We can no longer continue to bear the burden,” an NNPCL official told journalists, emphasizing the financial strain invured by the subsidy system.
