LATEST: Petrol Soars To N1,030 As NNPC Hikes Price, Ends Dangote Refinery Deal

Abuja, Nigeria –  A wave of shock swept across the nation’s capital on Wednesday as the Nigerian National Petroleum Company Limited (NNPC Ltd) announced a significant increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol.

The price at various outlets in Abuja has jumped to N1,030 per litre, representing a substantial leap from previous prices.

The sudden price hike follows the company’s controversial decision to terminate its exclusive purchase agreement with Dangote Refinery, the country’s first private refinery.

This move effectively allows other marketers to directly purchase petrol from Dangote, ending NNPC’s monopoly.

Earlier on Monday, NNPC issued a statement announcing the end of the agreement, citing a shift towards a fully deregulated market.

The statement explained that this move would enable refineries, including Dangote, to sell to marketers on a “willing buyer, willing seller” basis.

While this move was presented as a step towards greater market flexibility, the immediate consequence has been a drastic increase in petrol prices.

Motorists and commuters in Abuja were left scrambling to fill their tanks at the new, inflated price, lamenting the sudden burden on their wallets.

The decision has sparked widespread debate and concern. Critics argue that the move is poorly timed and will exacerbate the already dire economic situation, particularly for low-income households.

They point to the fact that Nigerians are grappling with rising inflation and a depreciating currency, making the price hike an unwelcome blow.

Proponents, however, argue that the move is necessary to move towards a truly competitive market.

They claim that the deregulation will ultimately benefit consumers by providing them with more choices and potentially lower prices in the long run.

The price hike has also raised questions about the role of NNPC and the government’s commitment to ensuring energy security.

With the government no longer directly controlling the supply of petrol, there are concerns about potential shortages and price manipulation by marketers.

The Nigerian government is now facing immense pressure to address the situation and provide clarity on the future of petrol pricing.

The impact of this decision on the broader economy, the livelihoods of Nigerians, and the future of the oil and gas sector will be closely watched in the coming weeks.