The reason behind the increase in Premium Motor Spirit (petrol) by the Nigerian government has been revealed.
According to Oil Marketers, the government has fully removed the subsidy on the commodity leading to an increase in fuel prices across the country.
POLITICS NIGERIA reports that the recent price hike has led to petrol price climbing to N1,030 and N998 per liter in Abuja and Lagos.
According to Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), the price hike marks the beginning of total deregulation of the oil and gas sector and implementation of the Petroleum Industry Act.
“The removal of subsidy is a welcome development, as it will encourage investment in the sector and ensure efficient supply chain management,” Ukadike stated.
NNPCL retail outlets adjusted their fuel pump price from N897 per liter to N1,030, following the removal of subsidy. Ukadike noted, “With this, I don’t think there is anything like a subsidy on petroleum products now. NNPCL is now selling as they are buying from Dangote Refinery. NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship. We are embracing the new NNPCL price template.”
However, Ukadike emphasized that NNPCL and Dangote Refinery are yet to release their ex-depot prices, crucial for determining marketers’ selling prices. “Once the ex-depot prices are released, we will choose where to buy our petroleum products and stock our filling stations.”
Industry sources revealed that Dangote Refinery increased its petrol price to N977 per liter from N898. However, the company has not officially confirmed this.
