BREAKING: Petrol to Sell Above ₦1,000 Per Litre As NNPC Announces Fuel Hike

Petrol to Sell Above ₦1,000 Per Litre As NNPC Announces Fuel Hike

 

In a significant development that could impact households and businesses across Nigeria, the Nigerian National Petroleum Corporation (NNPC) announced on Monday that petrol prices are set to rise sharply, exceeding ₦1,000 per litre in parts of the country.

 

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This announcement marks the latest consequence of the ongoing deregulation of the nation’s downstream oil sector.

 

According to a statement from NNPC spokesperson Olufemi Soneye, the price of petrol sourced from the Dangote refinery is projected to sell as high as ₦1,019 per litre in states like Borno, with slightly lower rates of ₦999.22 in Abuja, Kano, Sokoto, and other northern states.

 

In southern regions like Oyo and Rivers, prices will hover around ₦960 per litre, while Lagos and surrounding areas will see the lowest rate of ₦950.

 

Soneye’s statement, titled “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing,” provides insight into how the market has been adjusting following the deregulation of the sector, which has led to market-driven pricing for petroleum products.

 

Marketers Confirm New Price Reality

 

Speaking on the condition of anonymity, a major marketer confirmed on Tuesday that the deregulation of the sector is now in full effect. The marketer revealed that three dealers are expected to import petrol this week, with each vessel carrying around 35,000 metric tonnes of Premium Motor Spirit (PMS), totaling approximately 141 million litres.

 

The marketer explained the import process, stating, “Most marketers often import in parcels, with each parcel being about 35,000 metric tonnes. This week, we expect around three marketers to bring in products, though the entire import process is still subject to oversight by regulatory bodies.”

 

These imports, however, are complex operations that involve multiple layers of regulatory approvals. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) plays a key role in ensuring the quality of imported fuel, inspecting the products at various stages before they reach the Nigerian market.

 

Regulatory Oversight Still Crucial

 

NMDPRA spokesperson George Ene-Ita confirmed that marketers holding valid import licenses are allowed to bring in petrol, but only after the products meet rigorous testing standards.

 

“The products must be subjected to our testing protocols at the ports,” he said, adding that tests are conducted both at the point of origin and once the products arrive in Nigeria.

 

Ene-Ita explained that regulatory scrutiny is vital to ensure the quality of fuel entering the country. “Before smaller vessels bring the product inland, our teams fly out to inspect and test the products. This is to ensure they meet the required specifications before they are released into the market.”

 

Implications for Consumers and the Economy

 

This fuel price hike could place additional financial pressure on Nigerian consumers, many of whom are already grappling with the high cost of living. The sharp increase in petrol prices will likely have a ripple effect across various sectors, driving up transportation and goods costs.