The Nigerian National Petroleum Company Limited (NNPCL) has raised the pump price of premium motor spirit also known as petrol at its retail outlets from N617 per litre to N897 per litre.
A memo sent to all outlets indicated that the new price regime takes effect as from September 3, 2024.
An online video post indicated that the new price is being displayed on pumps in filling stations in Lagos.
The memo seen by TheNewsMatrics reads in part:
PMS PRICE REVIEW
Good Morning All,
This is to inform you that NNPC Retail Management has approved upward review of PMS pump price from N617/itre to N897/liter effective today, 3rd September . 2024.
Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter.
Thank you
Some NNPC retail stations had set pump prices at N855 per litre earlier in the day.
Some independent marketers in Lagos has been selling petrol for up to N960 per litre for over a week. Prices reached N2,000 per litre in some outlets in Ogun State.
TheNewsMatrics reports that the price hike coincides with the presentation of the first batch of petrol produced by Dangote refinery.
Industry insiders say that the new price template is to accommodate agreements reached between a federal government team and refinery on petrol prices under a zero subsidy regime and in line with concessions to sell crude oil to Dangote refinery in naira instead of dollars.
NNPC is the sole domestic off taker of Dangote petrol under the terms of the agreements.
The NNPC had at the weekend admitted its indebtedness to international oil traders which has hampered efforts to procure fresh petrol supplies that has triggered a prolonged scarcity and priced in many retail station already hitting the N1,000 per litre mark.
The company said the financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
It stated: “In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide”
See video below:
