NNPC Adjusts Fuel Prices Nationwide
The Nigerian National Petroleum Company Limited (NNPC) has increased fuel prices across the country, with petrol now selling at N950.22 in Lagos and N1,019 in Borno. This comes after the company lifted over 16 million litres of Premium Motor Spirit (PMS) from the Dangote Refinery in Lagos. The new prices are causing concerns among Nigerians already dealing with high inflation and economic challenges.
Price Differences Across States
The new price regime shows variations depending on the state. For instance, while Lagosians will pay N950.22 per litre, residents in Rivers will pay N980.22, and those in Sokoto, Kaduna, and Kano will see a price of N999.22. According to a statement from Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, the company purchased PMS at N898.78 per litre from the Dangote Refinery.
Payment in Dollars Until October
NNPC confirmed it made transactions with Dangote Refinery in U.S. dollars and will start naira-based transactions on October 1st, 2024. The company emphasised that the pricing model follows the Petroleum Industry Act (PIA), which mandates parties to negotiate PMS prices without government intervention.
Marketers Demand Direct Access
Amid the price hike, oil marketers are calling for direct access to the Dangote Refinery. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), argued that the current system, which sees NNPC as a middleman, is counterproductive. He reiterated the need for a willing-buyer and willing-seller approach to give marketers more direct access to fuel supplies.
Nigerians Face Higher Costs
The increased pump prices come at a time when many Nigerians are already grappling with economic difficulties. Weeks of petrol scarcity and rising inflation have intensified public frustration. Meanwhile, despite adopting a new minimum wage of N70,000 in July, the federal government has yet to implement the wage increase.
Industry Reactions and Economic Impact
Industry experts are warning that the price hike will have far-reaching effects on inflation and the cost of living. The petrol price increase is expected to raise transportation costs and further burden the average Nigerian. Despite the challenges, NNPC continues to assert its position within the market, following the provisions laid out in the PIA.
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