NNPCL INCREASES PETROL PRICE TO N990 IN ABUJA, N965 IN LAGOS
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Retail outlets operated by the Nigerian National Petroleum Company Limited (NNPCL) have raised the pump price of Premium Motor Spirit (PMS), also known as petrol, from N965 to N990 per litre in the Federal Capital Territory. The new price structure, implemented nationwide on Tuesday, also saw an increase in Lagos, where the NNPCL price rose from N925 to N960 per litre.
According to checks by our correspondent at several filling stations, the new price has been implemented. This represents an increase of N20 or 2.1% from the N970 retail price announced by the Dangote Refinery in partnership with MRS Filling Station, Ardova, and Heyden.
The price adjustment reflects the ongoing market dynamics and aligns with the deregulation policy in Nigeria’s petroleum sector, which allows fuel prices to fluctuate based on supply and demand.
This increase comes on the heels of recent changes in the sector, including the commencement of loading operations at the Dangote Refinery, which is expected to transform the fuel supply chain in Nigeria.
It should be noted that just last Friday, petrol prices increased to between N1,050 and N1,150 per litre due to a rise in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners. The $20 billion plant increased its PMS price from N899 per litre to N955 per litre at its loading gantry.
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Dealers have confirmed that petrol prices are expected to keep rising, as crude oil, the primary component in fuel production, has been experiencing price hikes lately.
At an NNPCL station located at Airport Junction, Abuja, our correspondent observed that the price had been raised to N990 per litre, up from N965 on Monday. Another station at Life Camp listed its price at N970 per litre but was not selling at the time of our visit, awaiting customers. A station at Mabuchi, however, was still selling at the previous price of N965 per litre.
Meanwhile, both major and independent marketers have raised petrol prices to as high as N1,030 per litre. Our correspondent confirmed that stations along Airport Road, Central Area, and Nyanya had adjusted their prices to between N990 and N1,030 per litre. This represents an increase of N60 or 6.18% from the N970 price they sold at last Friday.
Aym Shafa and Matrix filling stations on Airport Road were selling at N1,000 per litre, while Shema station had set its price at N1,030.
As consumers adjust to the new pump prices, experts predict further fluctuations in fuel pricing as Nigeria continues to align its energy policies with global market trends.
A source from a private depot revealed that loading operations had fully commenced on Monday, with bulk marketers now loading products from the Dangote Refinery.
The source said, “Refined petroleum sales commenced fully today with no issues at all. Marketers have increased their prices between N965 and N975 per litre at depots but at filling stations, a litre increased above N1,000 in Lagos. In Akwa Ibom, prices increased to N1,100.”
Reacting, an oil and gas expert, Olatide Jeremiah, said the refinery, Depot, and Pump price changes are a reflection of market forces and a testament to the petroleum sector being deregulated.
He said, “The Refinery, Depot, and Pump price changes are a reflection of market forces and a testament to the petroleum sector being deregulated. Deregulation is one major solution to fuel scarcity and hike in pump prices.
“This hike is temporary; it’s an effect of Former President Biden’s ban on Russian oil companies. As of this morning, Brent crude oil prices fall to $80 per barrel as Trump assumes Presidency.”
Brent crude oil futures fell to $79.98 per barrel on Monday, down from $81 last Friday.
By 11:20 am ET, Brent crude for March delivery had dropped by 1.5% to $79.66 per barrel, while WTI crude for February delivery decreased by 1.8% to $76.46 per barrel.
However, following yesterday’s inauguration, Brent crude saw a slight recovery, rising to $80.05.
Under former US President Joe Biden, sanctions on Russia were tightened, with heavy fines imposed on its vessels.
Experts suggest that the price movement was influenced by the inauguration of President Donald Trump, as markets awaited clarity on his policy direction.
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