The recent development has triggered widespread outrage and condemnation among Nigerians, with many labeling it as tone-deaf and insensitive.
Petroleum marketers have now disclosed the actual reason behind the latest hike in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL).
It should be recalled that NNPCL announced on Wednesday a fresh increase in petrol prices, which will now see the product selling at N1,030 and N998 per litre in Abuja (Federal Capital Territory) and Lagos State, respectively.
The upward adjustment from N897 to N1,030 per liter comes just a few weeks after an earlier price hike that saw fuel prices jump from N617 to N897 per liter.
The situation has sparked anger among the public, with many saying the move is insensitive and would worsen the ongoing economic hardship and the escalating cost of living crisis Nigerians are already enduring.
In response to the situation, petroleum marketers clarified that the price increase means the Nigerian government has fully removed the subsidy on Premium Motor Spirit (petrol).
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed this in an interview with DAILY POST on Wednesday.
He explained that the new pricing model reflects complete deregulation of the downstream sector and the enforcement of the Petroleum Industry Act.
Ukadike said, “The price structure indicates that the total deregulation of the oil and gas sector, alongside the Petroleum Industry Act, has commenced.”
“With this move, it seems there’s no longer a subsidy on petroleum products. NNPCL is now buying directly from Dangote Refinery. NNPCL is no longer acting as a middleman for oil marketers. Marketers are expected to purchase petrol directly from Dangote Refinery under a willing buyer, willing seller arrangement. We are aligning with the new NNPCL pricing framework.”
He added, however, that both NNPCL and Dangote Refinery have yet to release their ex-depot prices for petrol, which will guide marketers on sales.
“Although ex-depot prices haven’t been released yet, we are awaiting NNPCL’s ex-depot price. Once both NNPCL’s and Dangote Refinery’s ex-depot prices are available, we will decide where to source our petrol and supply our filling stations,” he explained to DAILY POST.
Meanwhile, reports have surfaced that Dangote Refinery has increased its petrol price from N898 per liter to N977, according to industrial sources familiar with the development.
However, Dangote Refinery has not issued an official statement regarding its petrol pricing as of the time of this report.
