Petroleum marketers have stated that the Nigerian government has entirely eliminated the subsidy on Premium Motor Spirit (petrol), which has led the Nigerian National Petroleum Company Limited (NNPCL) to raise the price of petrol to N1,030 and N998 per litre in Abuja and Lagos, respectively.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, shared this information exclusively with DAILY POST on Wednesday, responding to the recent fuel price hike at NNPC outlets.
According to DAILY POST, NNPCL retail stations adjusted their fuel prices on Wednesday from N897 per litre to N1,030. This change follows a previous increase from N617 to N897 per litre just weeks earlier.
Ukadike commented, “This price adjustment reflects the complete deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act. As it stands, there is no longer any subsidy on petroleum products. NNPCL is now selling at the rates they purchase from Dangote Refinery, and they are no longer acting as a middleman for oil marketers. Marketers are now required to source petrol directly from Dangote Refinery, establishing a direct buyer-seller relationship. We are adapting to the new pricing structure set by NNPCL.”
He also noted that NNPCL and Dangote Refinery have yet to announce their ex-depot prices for petrol, which will influence marketers’ purchasing decisions. “While we await the ex-depot prices from NNPCL, once they and Dangote Refinery release their rates, we will determine where to procure our petrol and stock our filling stations,” he explained to DAILY POST.
This announcement follows reports that Dangote Refinery has raised its petrol price from N898 to N977 per litre, according to industry sources familiar with the situation. However, as of this report, Dangote Refinery has not issued an official statement regarding its petrol pricing.
It is worth noting that NNPCL previously indicated it purchased petrol from Dangote at N898 per litre. Nonetheless, a spokesperson for Dangote Group, Anthony Chiejina, disputed NNPCL’s claim, although the company has not disclosed its current petrol price.
This situation has sparked controversy within the oil and gas sector.
