*As NNPCL jerks up petrol pump price from N970 per liter to N1,030 per liter
*The increase shows 12.7 percent or N113 increase from the previous price
*Already, all NNPCL filling stations in Abuja, Lagos, others have adjusted to the new price
*Stakeholders express shock, call for immediate sack of NNPCL GMD, Mele Kyari
By Onu Okorie
The Nigerian National Petroleum Company Limited NNPCL has increased the price of Premium Motor Spirit, PMS, otherwise known as petrol in different parts of the country.
The increase in the price of petrol, which came yesterday as a shock to Nigerians, was noticed at the pumps of all NNPCL depots in Lagos State and federal capital territory FTC, Abuja.
While the price of petrol has currently increased to N1, 029.01/litre in the Federal Capital Territory based on a new petrol price template reportedly released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, information available also shows that it was increased from N855 per litre to N998 per litre in Lagos.
The new development is a 12.7 percent or N113 increase from the initial price.
It may be recalled that the NNPCL had on September 3, 2024 raised the price of petrol from N568, which was the lowest in Lagos, and N617 in some other parts of the country, to a minimum of N855, obtainable in Lagos.
Meanwhile, NNPC Ltd has ended its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.
This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis. Since the recent exit of NNPC Ltd as the middleman in the Dangote Refinery PMS sale, the nation’s marketers are now free to buy their products from the refinery on a willing-buyer willing-seller basis.
The decision by NNPC to stop being the sole off-taker of petrol from the Dangote refinery means that the Federal Government has systematically stopped subsidy on petrol completely.
NNPCL was shouldering a subsidy of about N3.3bn daily on Dangote petrol, meaning in 30 days it might spend N99bn to subsidise Dangote petrol to marketers.
It’s believed that the new price of PMS was as a result of the Dangote Refinery price template, being the major supplier of the product to the NNPCL and independent marketers.
Also it’s believed that the Dangote Refinery fixed the price of PMS at N977 for the offtakers prompting them to also adjust the prices for the customers.
Meanwhile, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, has refuted the claim that he directed the NNPCL to stop running its own refineries and focus solely on equity participation in other refineries.
“This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government,” Lokpobiri said in a statement issued in Abuja.
The minister was reacting to a statement made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented him at a recent conference in Lagos.
“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.
“I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability.”
In a related development, stakeholders from across the country while reacting to the development expressed shock over what they described as incessant increase in pump price of fuel and called for the immediate sack of the NNPL’s Group Managing Director, Mele Kyari.