NNPC Increase Petrol Price by N45 at Filling Stations
- The NNPC Limited has announced an increase in the pump price for Premium Motor Spirit (PMS) for Nigerians
- The latest change follows recent adjustments experienced at depots and also at Dangote refinery
- The new fuel price at filling stations is expected to cause a transportation fare increase across the country
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian National Petroleum Company Limited (NNPCL) has increased its petrol pump price to N915 per litre in Lagos on Sunday, June 22.
This new price represents a N45 ncrease from the previous pump price of N870 per litre.
Source: Getty Images
Amos, A filling station attendant in Lagos, told Legit.ng
"Our manager was instructed on Sunday morning to adjust the pump price to N915. Our previous price is N870 per litre."
In Abuja, NNPC sells petrol at N945
Like NNPC, other fuel stations increase petrol prices
Earlier, Legit.ng reported that Ardova, Mobil, Petrocam, Hyden, Matrix and other filling stations have also made changes to their pump price above N900 per litre.
At the Ardova filling station, the fuel pump price was increased from N865 per litre to N930 per litre.
At MRS Oil Nigeria filling stations, fuel is also now being sold at N925 per litre in Lagos, up from N865 just days ago.
The company also released the following new prices for its fuel:
- Lagos: N925
- South-West: N935
- North-West & North-Central: N945
- South-South & South-East: N955
- North-East: N955
Not only MRS, but other Dangote partners such as Technoil and Optima Energy have also adjusted their petrol pump prices.
Source: Getty Images
Dangote increases petrol price
The Dangote Petroleum Refinery has increased its ex-depot petrol price to N880 per litre.
The new price represents a N55 increase compared to the previous rate of N828 quoted by the refinery.
Read also
Filling stations immediately change petrol price as Dangote Refinery makes new announcement
Petroleumprice.ng, a platform that tracks daily product prices, as well as a pro forma invoice, confirmed the latest change.
Nigeria's fuel price lowest in ECOWAS region – Energy economist
Fuel prices in Nigeria remain the lowest across the West African sub-region despite rising local concerns, an energy economist, Kaseem Abidemi Obakhume, has said.
“Interestingly, on the West Africa Corridor, the price of PMS is still way much cheaper in Nigeria compared to any other country in West Africa on the ECOWAS corridor,” Obakhume told Legit.ng.
He explained that the price of any grade of crude oil is determined globally and quoted in US dollars, regardless of whether it's exchanged locally in naira.
“If you want to get the price of any grade of crude oil, because we have different grades, we can just go online. It’s priced in dollars.”
“Even when there's the Naira for crude exchange, it's still going to be priced in dollars. The only difference would be what benchmark they use for the exchange rate.”
“If the exchange rate significantly improves, the price of PMS is going to drop,” he said.
Why is fuel price increasing
The changes in petrol prices can be traced to the recent surge in global crude oil prices.
Reuters reports that oil prices jumped by nearly 3% as a week-old air war between Israel and Iran escalated. Brent crude futures settled up $2.15, or 2.8%, at $78.85 per barrel, the highest close since January 22.
Meanwhile, U.S. West Texas Intermediate (WTI) crude for July rose by $2.06, or 2.7%, to $77.20 at 1:30 p.m. EST (5:30 p.m. GMT).
Despite Nigeria being an oil-producing nation, Aliko Dangote recently revealed that his 650,000-barrel-per-day refinery is increasingly sourcing crude oil from the United States.
This exposes the refinery to fluctuations in global oil prices and exchange rate volatility. To protect its margins, the refinery adjusts its petrol prices in line with international crude oil movements.
Editorial assistant Ololade Olatimehin provided exclusive commentary from an energy economist for this report.
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Source: Legit.ng
