Nigerians Reduced Petrol Price
Nigerians are bracing for a steep increase in petrol prices following the Nigerian National Petroleum Company Limited’s (NNPC Ltd) decision to end its exclusive purchase agreement with Dangote Refinery, according to a report by Premium Times.
The shift is expected to drive the cost of petrol to a minimum of ₦991.21 per litre from the current ₦897/litre, with significant price variations depending on the city.
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EKO HOT BLOG reports that In a detailed breakdown provided by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), it is projected that petrol prices will soar to ₦1,029.01 per litre in Abuja, ₦991.21 in Lagos, ₦1,040.31 in Kano, ₦1,007.35 in Calabar, ₦1,045.72 in Sokoto, and ₦1,059.39 in Maiduguri. Other cities, such as Ibadan and Enugu, are also expected to see sharp increases, with prices potentially reaching ₦999.27 and ₦1,022.63 per litre, respectively.
This policy shift marks a major move towards deregulation, allowing other marketers to buy petrol directly from refineries on a “willing buyer, willing seller” basis, enabling them to negotiate prices independently.
The decision also signals the removal of subsidies previously covered by the NNPC, which had been absorbing an average of ₦134.5 per litre to cushion the effects of global market fluctuations and foreign exchange rates.
NNPC Dangote Petrol Prices
Newly released data shows that the indicative pump price in Lagos should be ₦991.21, while NNPC’s actual pump price is currently ₦855 per litre, with a subsidy differential of ₦136.21. Similarly, in Abuja, the indicative price is ₦1,029.01, but the current NNPC pump price is ₦897, leaving a differential of ₦132.01.
This transition is expected to leave consumers nationwide grappling with the reality of higher fuel costs, especially as external factors like crude oil prices and foreign exchange rates may push the actual pump prices even higher than current estimates.
Sources indicated that pump prices could surge beyond the current projections if these global factors worsen, making the future of petrol pricing even more uncertain for Nigerian consumers.
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