NNPC Speaks On New Fuel Prices at Filling Stations, Presidency Explains Decision

• The Nigerian National Petroleum Company Limited (NNPC) has reacted to recent adjustments in fuel prices at filling stations
• The change is over 56% increase to N867 when compared to N567 and N617 official prices quoted previously
• There seems to be no hope that the prices will be reversed as the federal government explains the decision

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 (NNPC) has addressed the recent changes in fuel prices at its filling stations across the country.

On Tuesday, September 4, 2024, Nigerians were shocked to learn that NNPC filling stations, dispensing fuel at N567 and N617 per litre nationwide, increased pump prices to over N867 per litre.

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Other major marketers, including Ardova Plc, Conoil Plc, MRS Oil Nigeria Plc, NNPC Retail Limited, and TotalEnergies Marketing Nigeria Plc, adjusted their pump prices from an average of N618 to above N800.

Independent filling stations increased their prices, with some states seeing rates between N900 and N1,000 per litre.

The changes followed a viral social media message related to NNPCL Retail, which reads:

“Good Morning all, This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/itre to N897/liter effective today, 3rd September 2024."

NNPC reacts to the changes

While NNPC has not officially released a statement on the changes, AIT reports that the managing director of NNPC Retail, Huub Stokman, claimed that the message announcing the increase was not from the company.

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“This message was not sent by us. The Corporate Communications team will lead any messages as usual. Please disregard any information suggesting a price hike.”

Vanguard also reported that Olufemi Soneye, the NNPC’s chief communications officer, was unaware of any price increase.

His words:

“I’m not aware of this. Thank you for reaching out. I have no comment on the matter at this time. If there are any updates, I will make sure to inform you. I appreciate your understanding."

Presidency reacts to new petrol prices

The presidency has reacted to the NNPCL's decision to increase the petrol price, as the company announced on Tuesday.

In a post on his X handle on Wednesday, Bayo Onanuga, the special adviser on media and strategy to President Bola Ahmed Tinubu, said NNPC decided as the company can no longer shoulder the difference between the amount the product is being imported into Nigeria and how much it is being sold at the pumps.

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According to Onanuga, NNPC may go bankrupt if it continues to pay the difference between the landing cost of petrol in Nigeria and the price the product is being sold at the pumps.

He said:

“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent.

“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.

“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.

“That is the scenario that is unfolding, and the game changer and big relief giver may well be the Dangote refinery and other local refineries, which will become the fuel suppliers to the local market.

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“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain.”

Dangote sends message to Nigerians on petrol price from refinery

Earlier, Legit.ng reported that Aliko Dangote has sent a message to Nigerians regarding petrol pricing from his refinery.

The refinery, which recently began production, has been praised as a game-changer, and Femi Otedola has also expressed excitement.

Petrol from the refinery is expected to be available to Nigerians in a few days as NNPC and Dangote complete formalities.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng