Filling stations operated by the Nigerian National Petroleum Corporation Limited (NNPCL) have recently raised the price of fuel, marking a significant change for consumers. In Abuja, the capital city, the price for petrol has jumped from N897 to N1,030 per litre. This increase has prompted long queues at various filling stations as motorists rush to purchase fuel amid rising costs.
In Lagos, the situation is similar, with prices also on the rise. Fuel that was previously sold for N885 per litre is now being offered at N998. This price hike has led to frustration among drivers, who are faced with both higher costs and longer wait times at the pumps.
A Daily Trust correspondent visited an NNPC outlet in Maitama and observed the busy scene, where motorists were lined up to fill their tanks. Many expressed their dissatisfaction with the sudden increase, highlighting the impact of rising fuel prices on their daily lives and budgets.
At another NNPC station in Gudu, Abuja, the queues continued as motorists awaited service. When approached, an attendant clarified that while the station had fuel available, they were waiting for the meter to be updated to reflect the new price of N1,030 per litre.
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This price adjustment comes just a day after Daily Trust reported on the potential for a pump price increase due to the NNPCL’s withdrawal as a middleman in the Dangote Refinery purchase agreement. This shift indicates a significant change in the dynamics of fuel pricing in Nigeria.
Previously, the NNPCL absorbed a subsidy of N133 per litre to maintain a price gap between the facility’s costs and what retailers charged. With the recent changes, the national oil company will no longer provide this subsidy, signaling a move towards a fully deregulated oil market.
Marketers will now be responsible for negotiating petrol prices directly with the Dangote Refinery under a “willing buyer, willing seller” framework. This new arrangement aligns with the pricing practices for other deregulated products like diesel and kerosene, potentially leading to further fluctuations in fuel prices.
In September, Devakumar Edwin, Vice President at Dangote Industries, announced that the refinery, with a capacity of 650,000 barrels per day, had commenced petrol processing. Initially, the NNPCL was the sole off-taker, but these recent adjustments open the door for independent marketers to engage directly with Dangote, further reshaping the fuel market landscape in Nigeria.
