NNPC Increases Fuel Price Again: A Detailed Overview
By Wisdom Tide
October 29, 2024
The Nigerian National Petroleum Company (NNPC) Limited has announced another increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, across its retail outlets. This marks the second price hike in October, impacting both NNPC and private fuel stations.
Price Hike Overview
On October 3, NNPC raised the pump price of petrol from N855 per litre (set in September) to N998 per litre. However, prices vary by location, with outlets in Lagos and Abuja witnessing further escalations. In Lagos, the NNPC outlet at Ago Palace Way, Okota, now charges N1,025 per litre, while in Abuja’s Federal Housing, Kubwa area, the price stands at N1,050 per litre.
Private stations, including Mobil, Rain Oil, and AA Rano, have followed suit, adjusting their prices to between N1,100 and N1,250 per litre, reflecting a widespread increase across Nigeria’s petrol retail landscape.
Fuel Supply from Dangote Refinery and Price Discrepancy
The latest price adjustment comes over a month after NNPC began lifting petrol from the Dangote Petroleum Refinery, following prolonged price negotiations. Initially, NNPC purchased PMS from Dangote at N898 per litre on September 15. However, Dangote refinery disputed NNPC’s pricing claims, labeling them as "misleading and mischievous."
Shortly after, NNPC released estimated pump prices for various locations, indicating that PMS would sell at N950 per litre in Lagos and N999 per litre in Abuja.
Independent Petroleum Marketers Demand Fair Pricing
In response to the price hike, the Independent Petroleum Marketers Association of Nigeria (IPMAN) requested on October 10 that NNPC either refunds their payments or sells petrol to its members at the Dangote refinery’s rate. According to IPMAN, NNPC had retained payments from oil marketers for over three months. IPMAN further claimed that NNPC obtained PMS from the Dangote refinery at prices below N900 per litre, yet proposed resale to marketers at significantly higher rates — including N1,010 in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.
Government’s Revised Distribution Strategy
In a policy shift on October 11, the federal government authorized oil marketers to source petroleum products directly from Dangote and other local producers, a week after restricting Dangote refinery sales exclusively to NNPC. This change is intended to streamline distribution and potentially stabilize prices by allowing more direct access for independent marketers.
The recent NNPC price adjustments have sparked concern among consumers and industry stakeholders alike, with implications for the broader economy and fuel affordability across Nigeria. The coming weeks may reveal further government and industry actions to address these pricing challenges.
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