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NNPC Set To Skyrocket Petrol Prices Nationwide As Dangote Supply Falls Short

Published

2 months ago

Oct 7, 2024.

The Nigerian National Petroleum Company Limited (NNPC) is set to implement a new pricing regime for petrol after lifting approximately 103 million litres from Dangote Refinery between September 15 and 30, 2024, Premium Times reports.

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EKO HOT BLOG reports that during this period, the refinery managed to load only 2,207 out of 3,621 trucks, transporting 102.9 million litres of petrol—just 26% of the planned 400 million litres for the month.

NNPC, the sole off-taker, began lifting petrol on September 15 and purchased it from the refinery at ₦898.78 per litre, selling it to marketers at ₦765.99, subsidizing the product by nearly ₦133 per litre.

Despite the subsidy, petrol prices at NNPC stations across Nigeria have fluctuated between ₦855 and ₦897 per litre in the past month, depending on location. However, insiders warn of inevitable price hikes as the NNPC exhausts its imported petrol stock and relies more on supplies from Dangote Refinery.

According to a pricing template released by the NNPC on September 16, petrol prices were expected to reach ₦950.22 per litre in Lagos, ₦980.22 in Rivers, and ₦992.22 in Abuja, with the North-West facing prices as high as ₦999.22, and Borno and other North-Eastern states reaching ₦1,019 per litre.

NNPC Petrol Price Dangote

However, with crude oil prices now above $78 per barrel and the naira trading at ₦1,660 to a dollar, industry insiders say the actual price of petrol could exceed ₦1,350 per litre nationwide.

In early September, NNPC had already increased petrol prices at its stations from ₦617 per litre to between ₦855 and ₦897, depending on the region.