Petroleum marketers have explained that the removal of fuel subsidies by the Nigerian government is the main reason for the recent increase in fuel prices. This announcement follows the latest price adjustment by the Nigerian National Petroleum Company Limited (NNPCL), which raised the cost of Premium Motor Spirit (petrol) to N1,030 per litre in Abuja and N998 per litre in Lagos.
The spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, spoke to DAILY POST on Wednesday, confirming the changes. According to Ukadike, the price hike reflects the complete deregulation of the oil and gas sector under the Petroleum Industry Act (PIA).
Ukadike stated, “This is a price template that shows that the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act have taken off. With this, I don’t think there is anything like a subsidy on petroleum products now.”
He further explained that NNPCL is no longer acting as an intermediary for oil marketers and that petroleum products will now be purchased directly from sources like Dangote Refinery, based on a buyer-seller relationship. Marketers will now have to buy petrol from refineries at market prices, and the NNPCL will adjust its rates accordingly.
Despite the changes, Ukadike noted that NNPCL and Dangote Refinery have yet to release their ex-depot prices, which will determine the final price at which marketers can sell petrol. “We are waiting for NNPCL’s ex-depot prices. Once those are released, we will know where to buy and stock our filling stations,” he added.
Reports also suggest that Dangote Refinery has raised its petrol price to N977 per litre, though no official statement has been made by the company at the time of this report. This has added to the ongoing discussions within the oil and gas sector, as different players react to the changes in pricing structures.
The recent developments have sparked controversy and concern, as consumers brace for the impact of these rising fuel costs on everyday expenses. The full impact of the price adjustments will become clearer once ex-depot prices are finalized and more information is provided by key industry stakeholders.
