NNPC Increases Petrol Price To N1,030/Litre

The Nigerian National Petroleum Company Limited (NNPC Ltd) has increased the petrol pump price to N1,030 per litre at its outlets in Abuja, following the termination of its exclusive purchase agreement with Dangote Refinery.

The hike, observed on Wednesday, marks a significant shift in the country’s fuel market dynamics.

This development comes after NNPC ended its sole off-taker arrangement with Dangote Refinery, which had previously restricted the sale of petrol from the refinery exclusively to the national oil company.

Under the new arrangement, independent marketers are now free to negotiate prices directly with Dangote Refinery, aligning the supply of petrol with fully deregulated market practices, based on a willing buyer, willing seller model.

PREMIUM TIMES confirmed that NNPC outlets in various parts of the Federal Capital Territory, including the Central Area, Wuse, and Lugbe, adjusted their pump prices from N897 to N1,030 per litre on Wednesday.

The sudden increase left motorists and commuters frustrated, with many expressing concerns over the rising cost of living.

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“This is funny; I just noticed that the pump price has changed from N897 to N1,030,” a customer, Glory Okoye, told PREMIUM TIMES at one of the NNPC stations.

In addition to the price hike in Abuja, NNPC outlets in other parts of the country, including Akute in Ogun State, remained shut, leaving motorists stranded.

A source told PREMIUM TIMES that the stations had sold petrol earlier in the day but halted operations midway due to technical issues and awaited further pricing directives from top management.

The decision to end the exclusive deal with Dangote Refinery comes after NNPC struggled to maintain its previous pricing structure.

In September, NNPC disclosed that it was purchasing petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, incurring a subsidy of almost N133 per litre. However, this arrangement was deemed unsustainable due to rising costs.

Between September 15 and 30, NNPC lifted about 103 million litres of petrol from the refinery, far below the projected 400 million litres, translating to a performance rate of just 26 percent. This shortfall in supply added pressure on the company’s operations, prompting a reevaluation of its agreements and pricing strategies.