The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS) otherwise known as petrol to N1,030 per litre at various outlets in Abuja on Wednesday.
The development comes after the NNPCL decided to terminate its exclusive purchase agreement with Dangote Refinery.
Earlier on Monday, the Nigerian National Petroleum Company Limited (NNPC Ltd) had notified intention to end its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
It was observed on Wednesday morning that NNPC Ltd outlets in the Central area of Abuja, the Federal Capital Territory, adjusted the pump price of petroleum to N1,030.
At the station, Glory Okoye, a customer who spoke to newmen, said: “This is funny; I just noticed that the pump price has changed from N897 to N1,030.”
At several other outlets in the Wuse, Lugbe area of the capital city, it was confirmed that the pump price equally jumped to N1,030 as motorists and commuters grumbled amid the uncertainty.
However, checks by our correspondent at independent marketers’ stations, including Conoil and Total Energies, opposite the NNPCL headquarters, showed the product was sold at N926, but with long queues.
In Akute, Ogun State, this newspaper observed that the NNPC outlets were shut against motorists who formed a long queue along the Akute-Alagbole Road.
A motorist told journalists that the outlets sold petrol in the early hours of Wednesday but dropped midway, claiming that one of its generating sets was faulty.
“But attendants said they are waiting for a directive on prices from the top,” a frustrated customer said.
In September NNPC had claimed that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre. However, the company said this arrangement is no longer sustainable.
