The Nigerian government has fully removed the subsidy on Premium Motor Spirit (petrol), leading to the Nigerian National Petroleum Company Limited (NNPCL) increasing the fuel price to N1,030 and N998 per liter in Abuja and Lagos, respectively. This development was confirmed by Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Thank you for reading this post, don't forget to subscribe!According to Ukadike, the latest price hike signifies the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act. “It is a price template that shows the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act have taken off,” he stated.
Ukadike further explained that with this development, there is no longer a subsidy on petroleum products. “NNPCL is now selling as they are buying from Dangote Refinery. NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship.”
The NNPCL’s decision to increase the fuel price comes weeks after it adjusted the price from N617 to N897 per liter. However, Ukadike noted that NNPCL and Dangote Refinery are yet to release their ex-depot prices, which will determine whether marketers will sell the product.
“Although they have not released their ex-depot prices, we are waiting for NNPCL’s ex-depot prices. Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will now choose where to buy our petroleum products and stock our filling stations,” Ukadike added.
Meanwhile, reports indicate that Dangote Refinery increased its petrol price to N977 per liter from N898. However, Dangote Refinery has not released an official statement on its petrol price.
It’s worth noting that NNPCL had earlier revealed that it bought Dangote petrol at N898 per liter. However, a spokesperson for Dangote Group, Anthony Chiejina, disagreed with NNPCL’s claim, but the company did not disclose its petrol price at the time.
The development has sparked controversy in the oil and gas sector, with many stakeholders calling for clarity on the pricing template.