The price of Premium Motor Spirit (PMS) popularly known as petrol has risen across the country as independent oil marketers, which account for the majority of retail outlets have adjusted the pump price of petrol to about N1,200 per liter.
This development follows the Nigerian National Petroleum Company Ltd’s (NNPC) decision to end its exclusive purchase agreement with Dangote Refinery and Petrochemical Company.
The price adjustment, which took effect on Wednesday, reflects the cost at which marketers purchased the product from Dangote Refinery.
It should be noted that the national oil company had previously bore the cost of subsidizing the product to the target users.
A survey of filling stations across the FCT revealed that many have adjusted their pump prices to align with the new market reality.
The deregulation of the downstream sector allows marketers to buy petrol directly from Dangote Refinery, effectively ending NNPC’s monopoly.
Although in the short term the price of the product is expected to be high, Wwth marketers now negotiating prices directly with Dangote Refinery, industry experts predict increased competition and potentially stabilized prices in the long run.
