Petroleum marketers have stated that the Nigerian government has completely removed the subsidy on Premium Motor Spirit (petrol), leading to the Nigerian National Petroleum Company Limited (NNPCL) raising the fuel price to N1,030 in Abuja and N998 in Lagos State.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, shared this insight exclusively with DAILY POST on Wednesday. He was responding to the recent price hikes at NNPC outlets.
According to reports, NNPCL retail stations adjusted their fuel pump price from N897 per litre to N1,030. This increase follows a previous hike in September when the price rose from N617 to N897.
Ukadike explained, “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.” He added that with the removal of the subsidy, NNPCL is now selling petrol at the prices set by Dangote Refinery, indicating a shift in how fuel is distributed.
He noted, “NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship. We are embracing the new NNPCL price template.”
However, Ukadike mentioned that both NNPCL and Dangote Refinery have yet to announce their petrol ex-depot prices, which will influence how marketers set their prices. “Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will choose where to buy our petroleum products,” he stated.
Reports have indicated that Dangote Refinery has increased its petrol price to N977 per litre from N898, although the company has not officially confirmed this change yet.
This situation has sparked controversy within the oil and gas sector, especially given the conflicting statements regarding pricing between NNPCL and Dangote Group.
