Nigerians were greeted with yet suffering of queues in filling stations as Nigerian National Petroleum Company Limited on Tuesday adjusted the pump prices of the Premium Motor Spirit, popularly known as petrol as oil marketers foresee further price hikes in the short term.
The national oil firm raised the retail price of petrol in Abuja to N1,060 from N1,030 per litre.
In Lagos, it was confirmed that NNPCL stations increased the unit price of the commodity from N998 to N1,025 per litre, which received widespread criticisms from the Organised Private Sector, Civil Society Organisations and Nigerians in general.
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Experts and key followers of the Nigerian oil and gas sector fear inflation in the country may further skyrocket following the latest hike, after it rose to a 28-year high (34.2 per cent) in June, which could compound the hardship in the country.
This came as the Dangote Petroleum Refinery faulted the continued importation of petrol by oil marketers and NNPCL despite the fact that the commodity was produced in the country by the $20bn Lekki-based plant.
The President of Dangote Group, Alhaji Aliko Dangote, raised the concern in Abuja on Tuesday after he was summoned by President Bola Tinubu, alongside the Minister of Finance, Wale Edun, and the Group Chief Executive Officer of NNPCL, Mele Kyari.
“I have a refinery, I’m not in retail business. If I’m in retail business then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick (petrol). If they don’t come forward and pick, what do you want me to do?
“So, I am expecting either the NNPCL or the marketers to stop importing; they should come and pick because we have what they need. And as they move, I will be pumping,” Dangote stated after the meeting with the President in Abuja.
The new petrol price in Abuja is an increase of N30 from the old price, while in Lagos it is an increase of N27.
This adjustment also marks the third price change between September and October 2024 and is part of the government’s deregulation policy, which allows prices to fluctuate based on supply and demand dynamics.
The fresh increase followed the October 9, 2024 hike from N897 to N1,030. Also, on September 2, 2024, it was increased by the NNPCL. The retail company had hiked the price per litre of petrol from N617 to N897, sparking nationwide outrage.
Since the “subsidy is gone” presidential declaration in May 2023, the NNPCL has gradually increased the pump prices of petrol from N184 in Lagos to N1,025.
Though there has not been any official statement from the NNPCL on the latest increase in petrol prices – just like the oil firm did during their last hike earlier this month – the NNPCL hinted at a fresh price increase when it began loading its first batch of petrol from the Dangote Refinery in mid-September.
Then, it announced that it got petrol at N898 per litre from the private refinery and that it would sell it for N950 per litre in Lagos and N1,019 in Borno.
Dangote Refinery instantly denied selling petrol to the NNPCL at N898 but the latter challenged the refinery to release the price it sold the product.
The NNPCL further released a breakdown of pricing for Dangote petrol at its filling stations across the country.
Meanwhile, the National Publicity Secretary, Petroleum Retail Outlet-Owners Association of Nigeria, Joseph Obele, said members of the association had been buying PMS from the NNPC at the rate of N1,040 per litre before the oil company’s price hike on Tuesday.
He clarified that the NNPC was yet to issue a memo announcing the price increase, nor has it changed the price on the purchasing portal.
“We have not received a memo from the NNPC. It is circulating on social media, the news regarding price increment. But in our national headquarters, we have yet to get a memo to that effect, and it has yet to be reflected on our buying portal.
“The retail outlet owners or marketers licensed by the NNPC have a buying portal called the NNPC Retail Buying Express where we book products, and the amount on that portal as of this hour is still the old one. However, there are indications that the price will have an upward review in the next few days, but we are yet to see it on our portal,” Obele stated.
Asked how much the marketers buy from NNPC, Obele said those in Port Harcourt bought a litre for N1,040 while those in Lagos got for around N1,020 and N1,030.
“Though our portal rate has not changed, there are indications that we are on the verge of another price hike. We have permutations in the sector that make us ascertain when we are anticipating an upward review; and from all indications, there might be a review in the next few days because we are aware that the NNPC retail outlets in Lagos and Abuja have adjusted prices in the early hours of today (Tuesday),” Obele stated.