The Nigerian National Petroleum Company Limited (NNPCL) has increased fuel pump prices, a move attributed to the complete removal of subsidies on Premium Motor Spirit (petrol) by the Nigerian government.
This change is part of the broader implementation of the Petroleum Industry Act, marking a significant shift towards the full deregulation of the oil and gas sector.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that the price adjustment reflects a new pricing template. He stated, “It is a price template that shows that the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act have taken off.” Consequently, petrol prices have risen to N1,030 per liter in Abuja and N998 in Lagos.
This transition means that NNPCL is no longer serving as an intermediary for oil marketers. Instead, marketers are now required to purchase directly from Dangote Refinery, establishing a "willing buyer, selling relationship."
However, the ex-depot prices from both NNPCL and Dangote Refinery remain undisclosed, leaving marketers uncertain about their future selling prices.
The situation has sparked controversy within the oil sector, particularly with reports suggesting that Dangote Refinery has increased its petrol price to N977 per liter. Despite these claims, there has been no official confirmation from Dangote Refinery regarding its current pricing.
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