Understanding the Factors Behind NNPCL’s Recent Fuel Price Hike
The NNPCL fuel price increase has sparked widespread discussions across Nigeria. According to petroleum marketers, the complete removal of subsidies on Premium Motor Spirit (PMS) by the Nigerian government is the key reason for the hike in fuel prices. As of October 2024, the Nigerian National Petroleum Company Limited (NNPCL) adjusted the pump price of petrol to N1,030 per litre in Abuja and N998 per litre in Lagos.
Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria, explained that the increase is a result of the full implementation of the Petroleum Industry Act, which marks the total deregulation of the oil and gas sector. He emphasized that NNPCL is now purchasing fuel from Dangote Refinery, no longer serving as a middleman for other oil marketers. This shift creates a “willing buyer, willing seller” dynamic in the market.
Despite this adjustment, both NNPCL and Dangote Refinery have yet to announce their official ex-depot prices, which will dictate how marketers will source and distribute petrol. Industrial sources indicate that Dangote Refinery recently raised its petrol price from N898 to N977 per litre, although an official statement has not been issued by the company as of yet.
The NNPCL fuel price increase highlights the ongoing transition in Nigeria’s oil and gas sector as the country embraces market-driven pricing under deregulation, leaving many awaiting the final ex-depot prices to gauge the true cost at the pumps.
Discover more from Destkelamedia
Subscribe to get the latest posts sent to your email.