Marketers Explain Real Reasons Behind NNPCL’s Latest Fuel Price Increase

Marketers Explain Real Reasons Behind NNPCL’s Latest Fuel Price IncreasePetroleum marketers have reported that the Nigerian government has fully removed the subsidy on Premium Motor Spirit (petrol), which has resulted in the Nigerian National Petroleum Company Limited (NNPCL) increasing the price of petrol to N1,030 per liter in Abuja and N998 in Lagos State.....KINDLY READ THE FULL STORY HERE▶

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, shared this exclusive update with DAILY POST on Wednesday in response to the recent fuel price hike at NNPC outlets.

As noted, NNPCL’s retail outlets raised their fuel pump price from N897 per liter to N1,030 on Wednesday. This adjustment follows an earlier increase from N617 to N897 just weeks prior.

Ukadike explained, “This price adjustment reflects the complete deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act. There is essentially no subsidy on petroleum products anymore. NNPCL is now selling at the rates it buys from Dangote Refinery, acting no longer as a middleman for oil marketers. It has become a direct buyer-seller relationship, and we are adapting to the new NNPCL price structure.”

He noted, however, that both NNPCL and Dangote Refinery have yet to release their petrol ex-depot prices, which will dictate the pricing strategies of marketers. “We are waiting for NNPCL’s ex-depot prices. Once they and Dangote Refinery release their prices, we will decide where to purchase our petrol products and stock our filling stations,” he added.

Additionally, reports indicate that Dangote Refinery has raised its petrol price to N977 per liter, up from N898, according to industry sources. However, as of this report, Dangote Refinery has not confirmed this price change.

Previously, NNPCL disclosed that it procured petrol from Dangote at N898 per liter. Nonetheless, a spokesperson for Dangote Group, Anthony Chiejina, refuted this claim without specifying the company’s current petrol price. This situation has sparked controversy within the oil and gas sector.

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