The Nigerian National Petroleum Company Limited (NNPC) has raised the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at various outlets in Abuja as of Wednesday.
This increase follows NNPC’s recent decision to terminate its exclusive purchasing agreement with Dangote Refinery, which previously allowed NNPC to be the sole buyer of petrol from the refinery.
Advertorial
With the agreement now ended, other marketers can directly negotiate and purchase petrol from Dangote Refinery, signaling a shift towards a more competitive market.
This change aligns with the principles of a fully deregulated fuel sector, where products are sold based on a “willing buyer, willing seller” model.
Just last month, NNPC raised the fuel price to N855 per litre in Lagos and N897 in Abuja. The company reported purchasing petrol from Dangote Refinery at N898.78 per litre and selling it to marketers at N765.99 per litre, resulting in a subsidy of nearly N133 per litre, which NNPC indicated it can no longer maintain.
Advertorial
This price adjustment reflects the ongoing changes in Nigeria’s fuel market dynamics and the pressures faced by the NNPC in subsidizing fuel costs.
