After September Increase, NNPC Hikes Petrol Pump Price Again
The Nigerian National Petroleum Company Limited (NNPC Ltd) on Wednesday, October 9, 2024, increased the pump price of petrol N998 to N1,030 per litre at its outlets in Abuja.
This increase in price followed the NNPC Ltd’s decision to terminate its exclusive purchase agreement with Dangote Refinery, thus, marking a significant shift in Nigeria’s fuel market.
It was reported during the week that the NNPC would no longer serve as the sole buyer of petrol from Dangote Refinery as it would open to other marketers who can purchase fuel directly.
The development is expected to create a competitive, deregulated market where prices will be negotiated on a “willing buyer, willing seller” basis.
A visit to NNPC outlets in the Central Area of Abuja, showed that the pump price of petrol had been adjusted N1,030 per litre.
The increase sparked reactions among consumers as it marked one of the highest fuel prices recorded in the NNPC Ltd.
In September, the NNPC said it was purchasing petrol from Dangote Refinery at N898.78 per litre but, reselling it to marketers at N765.99 per litre, thereby subsidizing the product by N133 per litre.
Accordingly, the company declared that continuing the subsidy was unsustainable which led to the current price adjustment.
Between September 15 and 30, NNPC lifted approximately 103 million litres of petrol from Dangote Refinery, a small fraction of the 400 million litres originally planned for that period.
It was gathered from available records that only 2,207 out of the 3,621 trucks sent to the refinery were loaded, resulting in a 26% delivery performance.
This latest development signals a new chapter for Nigeria’s downstream oil sector as marketers gain direct access to the Dangote Refinery, but it also raises serious concerns over how consumers will be able to cope with astronomical increases in the pump price of petrol against the backdrop of the severe economic challenges being faced by citizens.
