The Nigerian National Petroleum Company Limited (NNPC) has raised the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at various outlets in Abuja as of Wednesday.
This price increase follows NNPC’s decision to terminate its exclusive purchase agreement with the Dangote Refinery, which had allowed NNPC to be the sole buyer of petrol from the refinery.
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The termination of the agreement, announced on Monday, opens the door for other marketers to purchase petrol directly from Dangote Refinery, moving away from NNPC’s exclusive role.
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This shift is in line with the current practice of fully deregulated petroleum products, allowing refineries to operate on a “willing buyer, willing seller” model, where prices are negotiated between refineries and marketers.
Just last month, NNPC had increased the pump price to N855 per litre in Lagos and N897 in Abuja. The company had been purchasing petrol from Dangote Refinery at N898.78 per litre and selling it to marketers at N765.99 per litre, absorbing a subsidy of nearly N133 per litre.
However, NNPC stated that it could no longer sustain this subsidy arrangement, leading to the latest price adjustment.
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