. ‘N113 more per litre,’ Details of the 12.7 per cent hike, the second price adjustment in the last 24 days, which happened 72 hours after Platforms Africa’s report
About 72 hours after Platforms Africa’s report on looming hike in the price of Premium Motor Spirit (PMS) also known as petrol, the Nigerian National Petroleum Company Limited (NNPCL) has increased the price of the product, from N855 per litre to N998 per litre in Lagos and over N1,000 per litre in Abuja.
Platforms Africa reports that this is the second adjustment in the last 24 days, which came less than 72 hours after a report by this reputable media group detailing the quiting of Middleman role by the NNPCL at the Dangote Refinery.
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The increase in the price of petrol, which came on Wednesday, was noticed at the pumps at all NNPCL depots in Lagos State.
The new development is a 12.7 percent or N113 increase from the initial price.
The increase in the price of petrol, which came on Wednesday, was noticed at the pumps at all NNPCL depots in Lagos State
The national oil company had on September 3, 2024 raised the price of petrol from N568, which was the lowest in Lagos, and N617 in some other parts of the country, to a minimum of N855, obtainable in Lagos.
Recall that Platforms Africa on Sunday, October 6 reported that Nigerian National Petroleum Company Limited (NNPC) was ending its exclusive purchase agreement with Dangote Refinery.
Quoting a report by an Abuja-based online newspaper, Premium Times, which revealed the new purchase tenplate, the report maintained that this is “opening up the market for other marketers to buy petrol directly from the refinery.”
While Premium Times noted that “this means NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery,” Platforms Africa reports that a further implication of this is that petrol will now sell at a cost-reflective price, making Nigerians to pay more
The last pricing template released by the NNPCon September 15 showed that the product was selling in its outlets at N980 per litre in Lagos and N1010 per litre in Maiduguri and other northeastern states.
Platforms Africa reports that this price is even higher at outlets belonging to the major and independent marketers.
Full Deregulation
Meanwhile, this new development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
Earlier in September, Devakumar Edwin, vice president at Dangote Industries Limited, said the 650,000 barrels per day Dangote Refinery has begun the processing of petrol.
But the NNPC, in reaction to a statement that the Dangote Refinery Limited is being undermined by actions of the company at the time, said it was not the sole offtaker of all products from the Dangote Refinery. It said the refinery was free to sell its petrol to any marketer.
The NNPC explained that the Dangote Refinery and any other domestic refinery were free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products such as diesel, aviation fuel and kerosene.
But on 15 September, the NNPC began loading petrol from the Dangote Refinery.
Although some major petroleum marketers were later reportedly approved to lift the product from the refinery under an agreement with NNPC Ltd, independent marketers remained excluded.
Platforms Africa
