Fuel prices in Nigeria have surged to N1,030 per liter at NNPC outlets in Abuja, sparking widespread concern among motorists and commuters.
This development follows the Nigerian National Petroleum Company Limited’s (NNPC) decision to terminate its exclusive purchase agreement with Dangote Refinery.
According to reports, the NNPC will no longer be the sole off-taker, allowing marketers to negotiate prices directly with Dangote Refinery. This shift aligns with the deregulated market practice, where refineries sell directly to marketers on a “willing buyer, willing seller” basis.
At NNPC outlets in Abuja’s Central area, customers were surprised by the sudden price hike. “This is funny; I just noticed that the pump price has changed from N897 to N1,030,” said Glory Okoye, a customer.
Similar price increases were observed at other NNPC outlets in Wuse and Lugbe. Motorists and commuters expressed frustration amidst the uncertainty.
In Akute, Ogun State, NNPC outlets were shut down, leaving motorists stranded. A motorist revealed that the outlets sold petrol earlier but stopped, citing a faulty generating set.
The NNPC had previously claimed it was buying petrol from Dangote Refinery at N898.78 per liter and selling to marketers at N765.99 per liter, shouldering a subsidy of almost N133 per liter. However, the company deemed this arrangement unsustainable.
Records show that between September 15 and 30, the NNPC lifted 103 million liters of petrol from Dangote Refinery, with the refinery loading 2,207 of the 3,621 trucks sent to it. This translated to just 26% performance.
The terminated agreement and subsequent price hike have raised concerns about the implications for Nigeria’s fuel market and consumers.
