NNPC Raises Petrol Prices Amid Market Deregulation
The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol. In Abuja, the price has surged from N897 to N1,030 per liter, while in Lagos, it has risen from N868 to N998 per liter, triggering reports of long queues at filling stations.
This price hike follows NNPCL’s withdrawal from its intermediary role in the Dangote Refinery’s supply chain. Previously, NNPCL subsidized the difference between the refinery’s price and the retail cost, covering a gap of N133 per liter. However, with the new pricing arrangement, NNPCL will no longer absorb this cost.
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The decision marks a shift towards full deregulation of Nigeria’s oil market. Under the new system, fuel marketers will now negotiate prices directly with the Dangote Refinery on a “willing buyer, willing seller” basis, similar to other deregulated petroleum products like diesel and kerosene.
This move also grants independent marketers the autonomy to source petrol directly from the refinery, reflecting a broader effort to create a more open and competitive fuel market in Nigeria.
