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In a major shift that impacts consumers nationwide, the Nigerian National Petroleum Company Limited (NNPCL) has raised fuel prices to ₦1,030 per litre in Abuja and ₦998 in Lagos, marking a substantial increase amid the government's decision to remove the fuel subsidy.
Reacting to the price spike, Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson Chinedu Ukadike said, "This is a price template that reflects the total deregulation of the oil and gas sector under the Petroleum Industry Act."
Ukadike further revealed that the NNPCL has shifted its fuel procurement strategy, now directly purchasing from the influential Dangote Refinery.
This move, coupled with the complete removal of the subsidy, marks a significant shift in the oil and gas sector.
In alignment with the new structure, NNPCL has shifted from its role as a middleman to adopting a 'willing buyer, willing seller' model, which allows marketers to procure products directly from Dangote Refinery.
"NNPCL is no longer a middleman for oil marketers," Ukadike added. "Marketers are to buy petrol products from Dangote Refinery, embracing the new NNPCL price template."
What's next for marketers?
Amidst the changes, fuel marketers find themselves in a state of anticipation, eagerly awaiting the official ex-depot prices from NNPCL and Dangote Refinery.
These prices will be crucial in shaping retailers' pricing decisions, underscoring the need for reliable and timely information in the current market.
"Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will choose where to buy our petroleum products," Ukadike explained.
Despite these adjustments, Dangote Refinery's petrol prices reportedly rose to ₦977 per litre, though no official statement has confirmed this increase.
Earlier, NNPCL revealed it bought petrol from Dangote at ₦898 per litre, a figure disputed by Dangote Group spokesperson Anthony Chiejina, who declined to provide an alternative price.
This latest increase, following swift adjustments from ₦617 to ₦897 in recent months, underscores a contentious period in Nigeria's oil sector as stakeholders and consumers brace for the implications of the subsidy's end.