The Nigeria National Petroleum Company Limited (NNPC) has announced an increase in the retail price of petrol to N850 per litre, marking a significant hike in fuel costs across the country. This increase comes as private operators are now required to purchase fuel at an ex-depot price of N950 per litre.
As a result, the retail price of petrol at private filling stations is expected to exceed N1000 per litre when dealer margins, transportation costs, and union fees are factored in. This development has caused concern among industry operators and consumers alike, who fear that the rising fuel prices could lead to further economic strain.
The price hike is reportedly aimed at encouraging the Dangote Refinery to accelerate its petrol production, which began earlier today. With the landing cost of petrol now at N1,118 per litre, the NNPC can no longer sustain the importation of fuel at prices significantly below this cost, leading to the inevitable price adjustment.
Efforts to reach the NNPC’s Chief Corporate Communications Officer, Femi Soneye, for comments were unsuccessful, as emails and WhatsApp messages went unanswered.
Industry insiders who spoke with Business Standards confirmed the price increase, expressing surprise at the suddenness of the move, which they claim was not discussed with them beforehand. The unexpected hike has left many operators scrambling to adjust to the new pricing structure, which could have wide-ranging implications for the Nigerian economy.
The price increase is likely to have a ripple effect on the cost of goods and services across the country, further exacerbating the financial pressures faced by Nigerians. As the situation unfolds, there is growing concern over the potential impact on the nation’s economic stability and the ability of consumers to cope with the soaring fuel prices.
