The Nigerian National Petroleum Company Limited (NNPCL), the country’s oil regulatory body, raised the price of petrol per litre across its retail outlets on Wednesday.
In Abuja, the petrol pump price rose to N1,030 per litre at various NNPC outlets, while in Lagos, the price increased to N998 per litre. Prices could be even higher in some northern states.
Earlier on Monday, Business Insider Africa reported that NNPC will end the exclusive purchasing rights it has held with Dangote Refinery. As a result, fuel pricing will now be dictated by market forces established by the Dangote refinery and other marketers.
Reports suggest that fuel stations owned by independent marketers are also adjusting their prices, with many crossing the N1,000 per litre threshold.
The federal government of Nigeria recently began selling its crude oil to Dangote Refinery and other refineries in naira, the local currency. Additionally, it granted Dangote Refinery exclusive rights to supply jet fuel to airlines operating within the country.
In September, the NNPC stated that it was purchasing petrol from Dangote Refinery at a rate of N898.78 per litre and selling it to marketers for N765.99 per litre, absorbing a subsidy of nearly N133 per litre. However, the company has since declared this arrangement unsustainable, Premium Times reported.
