Fuel Price Surges to N1,030 per Litre as NNPC Ends Exclusive Deal with Dangote Refinery
In a significant move, the Nigerian National Petroleum Company Limited (NNPC) has raised the price of Premium Motor Spirit (PMS) to N1,030 per litre at several outlets in Abuja. This hike follows the company’s decision to terminate its exclusive purchase agreement with Dangote Refinery.
Previously, NNPC had been the sole buyer of petrol from the refinery. However, with the end of the agreement, other marketers are now able to negotiate prices directly with Dangote Refinery, reflecting a more deregulated market structure.
This change comes after NNPC had already raised fuel prices last month to N855 per litre in Lagos and N897 in Abuja. At that time, NNPC was purchasing petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, absorbing a subsidy of nearly N133 per litre. The company has since stated that it can no longer sustain this subsidy arrangement.
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