In a surprising move on Tuesday, the Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of Premium Motor Spirit (petrol) from N537/litre to N617/litre in Abuja.
Independent oil marketers confirmed the increase in the cost of the commodity, as they stated that any shift in price by NNPCL stations was an indication of a rise in the pump price of PMS.
“This is because NNPCL is still the major importer of petrol into Nigeria currently, though other marketers are gradually importing the commodity. The price this (Tuesday) morning at some NNPCL stations is N617/litre,” the Secretary, of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, told newsmen.
This latest increase follows President Bola Tinubu’s announcement during his inaugural address on May 29, signalling the end of petrol subsidies. Consequently, petrol prices soared from N198/litre to over N500/litre on May 30, 2023.
Market experts and industry insiders have long warned that with the subsidy withdrawal and the floating of the naira against the dollar, the cost of petrol could surge as high as N700/litre.
The surge in global crude oil prices has also contributed to the recent hikes in petrol prices. Crude oil serves as the primary raw material for the production of PMS and other refined petroleum products. As a result, any fluctuations in global oil prices directly impact the local market.
Motorists in Abuja faced the immediate consequences of this price hike as they rushed to filling stations still dispensing petrol at N540/litre on Tuesday morning. However, news of the increase at NNPCL stations quickly spread, leading many independent outlets to lock their stations. Meanwhile, other stations swiftly adjusted their pump prices to reflect the new rate.
Notably, both the NNPCL and the downstream oil sector regulator have yet to release any official statement regarding this sudden increase in petrol prices. This lack of communication has left consumers and industry stakeholders anxious and uncertain about the future of fuel costs in the country.
As the situation continues to unfold, Nigerians eagerly await further updates from relevant authorities and hope for clarity regarding the future trajectory of petrol prices in the nation.
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