NNPCL Increases Petrol Price by 37% as Dangote Rolls Out Product Nationwide
- The Nigerian National Petroleum Company Limited (NNPC) has increased the price of petrol
- The company reportedly increased the pump price of the product to N855 per litre at its retail stations and N897 at other stations
- The development comes as Dangote unveiled petrol from the Dangote Refinery in Lagos
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company (NNPCL) has increased the pump price of petrol to N855 per litre at its retail stations and N897 per litre at stations owned by independent marketers.
The hike represents a 37% increase from N620 and N630, approved last year.
Source: Getty Images
The increase has yet to be officially confirmed by the NNPC, as Legit.ng calls to the NNPC spokesman went unanswered, and he did not reply to messages seeking clarification on the issue.
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Minister suggests new petrol price
However, Leadership reports that some NNPC retail stations have already begun selling the product at N855 per litre in some parts of Lagos.
A viral video shows an NNPC retail station displaying petrol prices at N855 per litre.
This development follows a report that the minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, suggested to the NNPC that the product's price be increased above N1,000 per litre to curb smuggling.
Lokpobiri said the national oil firm needed to increase petrol above the landing cost as the current price of N650 per litre encourages smuggling.
This development follows Aliko Dangote, chairman of the Dangote Group, unveiling Dangote petrol to the general public.
Dangote unveils petrol from refinery
Showcasing a sample of the product in a white plastic bottle today, Dangote said the commencement of sale of the product would save Nigeria over 40 per cent of the foreign exchange currently spent.
According to him, the company will start selling polymer products next month.
It is learnt that NNPC Limited (NNPCL) will be the initial purchaser of Dangote’s products. Its officials are already stationed at the Lagos petrochemical plant to take delivery.
As Dangote Refinery rolls out premium motor spirit (petrol) today from its 650000 barrels per day capacity facility, chairman of Dangote Group. Aliko Dangote, has told the world that petroleum products from the refinery are now ready for the market.
NNPC to be sole buyer of Dangote petrol
NNPC is expected to be the exclusive buyer of Dangote’s products due to its current challenges in meeting international debt obligations to global oil traders.
The rollout of petrol by Dangote Refinery marks a historic milestone in Nigeria’s oil and gas sector. The country, which has long relied on petrol imports, is taking a significant step towards self-sufficiency.
With a production capacity that meets domestic demand and allows for exports to neighbouring countries, Dangote Refinery is poised to end Nigeria’s dependence on imported petrol.
Dangote resolves crude supply issues
Nigeria currently consumes about 35 million litres of petrol daily, while Dangote Refinery, once fully operational, can produce at least 100 million litres daily.
Although the refinery has faced various challenges and delays, including supply issues with NNPCL and international oil companies (IOCs), these issues were eventually resolved through the intervention of the Nigerian Upstream Petroleum Regulatory Commission and other key stakeholders.
The federal executive council further supported the project by allowing Dangote Refinery to purchase crude oil in local currency and sell petrol in the same currency, easing pressure on the foreign exchange market.
Filling stations to adjust prices as depot prices rise
Legit.ng earlier reported that petrol may rise above N1,000 per litre at filling stations as the product cost in some private depots has been increased to between N920 and N950 per litre.
The development follows protests by Nigerians in Abuja on Monday, September 2, 2024, over the lingering petrol scarcity nationwide.
The protesters demanded the resignation of Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company Limited (NNPC).
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
