Petroleum marketers have provided insight into why the Nigerian National Petroleum Company Limited (NNPCL) recently raised the fuel pump prices to N1,030 per liter in Abuja and N998 per liter in Lagos, sparking public concerns.

The marketers say the increase is directly linked to the Nigerian government’s full removal of fuel subsidies on Premium Motor Spirit (PMS, also known as petrol). With subsidies gone, NNPCL’s pricing now reflects current market conditions without government intervention to lower costs.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared the reasons behind the price increase in an exclusive statement to DAILY POST on Wednesday.

Ukadike explained that NNPCL’s recent fuel price hikes reflect a full deregulation of the oil and gas sector. The company had already raised prices weeks earlier, from N617 to N897 per liter, before the current adjustment. This price shift is part of implementing the Petroleum Industry Act, which aims to reform the sector by letting prices align with market forces.

Ukadike elaborated, “The new price template NNPCL has released indicates that the era of fuel subsidies is over. With the subsidy fully removed, NNPCL now sells fuel based on its acquisition cost from Dangote Refinery. NNPCL no longer plays a middleman role but has shifted to a ‘willing buyer, willing seller’ model, meaning they buy from Dangote Refinery and resell directly to retailers. This change aligns with NNPCL’s updated pricing structure, reflecting the new reality of Nigeria’s deregulated oil and gas sector.”

He further added that NNPCL and Dangote Refinery are yet to finalize and release their ex-depot prices. These ex-depot prices will inform petroleum marketers on where to source fuel at the best cost, which will, in turn, affect the retail prices set at filling stations nationwide.

“Although we are still waiting on the release of these ex-depot prices, we anticipate NNPCL’s official rates soon. Once we have the ex-depot prices from both NNPCL and Dangote Refinery, we can then decide where to buy petroleum products to restock our filling stations,” Ukadike clarified

Additionally, recent reports from industry sources indicate that Dangote Refinery has raised its petrol price to N977 per liter, up from the previous N898. However, as of the time of this report, Dangote Refinery has not made an official statement to confirm the increase.