Petrol prices surge again as NNPCL adjusts fuel supply strategy

The pump price of petrol in Nigeria has risen again within three weeks, reaching N1,020 per liter in Lagos and N1,050 in Abuja at Nigerian National Petroleum Corporation Limited (NNPCL) outlets.

This marks a significant increase from the previous price of N897 per liter in Abuja and N885 in Lagos on October 9, when prices were first adjusted to N1,030 and N998, respectively.

A Daily Trust correspondent visiting an NNPCL station in Kubwa, Abuja, observed the new pricing in effect, with similar adjustments noted in Ikeja, Lagos.

This price hike follows NNPCL’s recent exit as a middleman in the supply chain with Dangote Refinery. The state oil company had previously absorbed a subsidy of N133 per liter, bridging the gap between refinery rates and retail prices. Now, with this exit, fuel marketers are responsible for negotiating petrol prices directly with the Dangote Refinery under a deregulated “willing buyer, willing seller” model mirroring the market structure for other products such as diesel and kerosene.

Industry experts describe this as a pivotal shift towards full deregulation in Nigeria’s oil sector. This move is expected to foster a competitive market, though it may lead to continued fluctuations in pump prices as global and local market dynamics take hold.