NNPC Limited retail stations and independent outlets started selling petrol as high as N1,065 per litre in Abuja, and N998 in Lagos among other new prices across Nigerian states, on Wednesday.
This price hike comes after the NNPCL ended its exclusive purchase deal with the Dangote Refinery, according to a Premium Times report.
The decision to set these new prices was reached through a joint review between the NNPCL and independent fuel marketers.
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Prior to this, Premium Times had revealed that the NNPCL quit its exclusive supply deal with Dangote, paving the way for marketers to negotiate prices directly with the refinery.
The quoted prices are between N1,030 and N1,065 per litre in Abuja, N998 per litre at the NNPCL stations in Lagos, N1,025 in other southwest states, between N1,060 and N1,070 in northeastern states, and between N1,055 and N1,075 south-south states.
Since the Dangote Refinery began operations in May, its relationship with the NNPCL has been rocky. According to Aliko Dangote, CEO of Dangote Group, the NNPCL lost its 20% stake in the refinery after failing to meet financial obligations.
The NNPCL later claimed it intentionally reduced its stake based on internal assessments.
There has also been some back-and-forth over petrol pricing. Dangote Group initially stated that the NNPCL had full authority to set prices, but it retracted that statement.
The regulator quickly clarified that, in a deregulated market, prices are dictated by market forces, not the NNPCL.
In July, the Federal Executive Council (FEC) stepped in, directing both parties to resolve their differences.
By September, the NNPCL estimated that petrol prices would be N950.22 in Lagos and N992.22 in Abuja based on its negotiations with the refinery.
“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery, which recognize current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021,” the NNPCL said at the time.
“The NNPC Ltd. can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024. We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”
The NNPCL began lifting petrol from Dangote Refinery on September 15, and the breakdown of their exclusive agreement has now influenced the latest price review.