Again, NNPC to Revise Fuel Prices Amid Nationwide Rollout of Dangote Petrol

• NNPC is set to carry out another increase in the pump price of the product at its filling stations across the country
• The hike in the petroleum product is being considered despite an initial increase in September and improved supply by Dangote Refinery
• The oil company insists current pricing is unsustainable and blames foreign exchange rate and global oil price

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The Nigerian National Petroleum Company Limited (NNPC) is gearing up to introduce a fresh pricing regime for the product despite last month's adjustments.

Sources close to the development reveal that the changes are imminent, setting the stage for increased hardship for Nigerians.

Pump price hike in September

On September 3, the NNPC raised the price of petrol at its filling stations from N617 per litre to between N855 and N897, depending on the location.

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Shortly afterwards, on September 15, the NNPC started lifting petrol from the Dangote Refinery as the exclusive off-taker of the product.

At the same time, the company revealed that it was purchasing the product from the refinery at N898.78 per litre and selling it to marketers at N765.99 per litre, thereby covering a substantial subsidy of nearly N133 per litre.

Reports indicate that the NNPC lifted approximately 103 million litres of petrol from the Dangote Refinery between September 15 and 30.

NNPC insiders told Premium Times that as the company's imported petrol stock depletes and reliance on supplies from the Dangote Refinery increases, an upward adjustment in pump prices is inevitable to reflect the shift.

In a pricing template released on September 16, the company indicated that once the gantry price from the Dangote Refinery and all associated charges were factored in, petrol prices at its pumps across the country would rise, depending on the location.

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According to the template, petrol prices will be N950.22 per litre in Lagos, N980.22 in Rivers state, and N992.22 in Abuja

The price would be N999.22 per litre in the northwest, while in Borno and other Northeastern states, it would reach approximately N1,019 per litre.

The cost would be N980.22 for the southeast, while in Southwest states such as Oyo, Ogun, Ekiti, Osun, and Ondo, consumers would pay N960.22 per litre.

NNPC hints at new pricing

However, company insiders have stated that the estimates from September 16 are no longer accurate due to fluctuations in the foreign exchange rate and the increase in crude oil prices driven by escalating tensions in the Middle East.

The official said:

“With crude now trading for more than $78 per barrel as of Sunday (today) and the naira exchanging for N1,660 to a dollar, there is no way a litre of petrol can sell for below N1350 per litre in Nigeria.”

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Since the removal of fuel subsidy in May 2023, petrol prices have tripled, worsening the challenges faced by citizens who rely on petrol to power their vehicles and generators due to a long-standing unreliable electricity supply.

Speaking on the price hike, Tunji Adewunmi, a social commentator, told Legit.ng that Nigeria's recent petrol price hike continues to strain citizens, raising concerns about inflation and the cost of living.

He said:

"The recent fuel scarcity and subsequent hike in pump price by the NNPC indicates a rising inflation rate ahead. Many are frustrated by the lack of alternatives or relief measures from the government, as transportation, food, and other essentials become more expensive."

He added that the government needs urgent action to address the economic challenges.

NNPC declares over N3 trillion profit

In related news, Legit.ng reported that the NNPC announced a net profit of N3.29 trillion for 2023.

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The new figure was the highest since 1977 and represented a 28%, or N700 billion, increase from the N2.54 trillion profit declared for 2022.

NNPCL said the results reflected the commitment and hard work of the company's management and staff.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng