Breaking: Again! NNPC hikes petrol pump price

The Nigerian National Petroleum Company Limited (NNPC Ltd) has increased the price of petrol to N1,030 per litre at its outlets in Abuja.

This price hike, which took effect on Wednesday, follows the company’s decision to terminate its exclusive purchase agreement with Dangote Refinery, marking a significant shift in Nigeria’s fuel market.

Earlier this week, it was reported that NNPC would no longer serve as the sole buyer of petrol from Dangote Refinery. Instead, the refinery is now open to other marketers who can purchase fuel directly, creating a competitive, deregulated market where prices will be negotiated on a “willing buyer, willing seller” basis.

At NNPC outlets in the Central Area of Abuja, the petrol price adjustment to N1,030 per litre sparked reactions among consumers, as this marks one of the highest fuel prices recorded in the country.

In September, NNPC revealed it had been purchasing petrol from Dangote Refinery at N898.78 per litre but was selling it to marketers at N765.99 per litre, effectively subsidizing the product by N133 per litre. However, the company has since declared that continuing the subsidy was unsustainable, leading to the current market 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. Only 2,207 out of the 3,621 trucks sent to the refinery were loaded, resulting in a 26% delivery performance, as revealed by records seen.

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 concerns over how consumers will cope with the surging fuel prices in an already challenging economic environment.