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NNPC jacks up petrol pump price to N617 per liter, citing market forces

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The Nigerian National Petroleum Company Limited (NNPC) has raised the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from N537 to N617 per litre at some of its filling stations in Abuja on Tuesday.

But the group chief executive officer of NNPC, Mele Kyari attributed the price increase to market forces, stating that it was not due to a shortage of petrol supply.

In a press briefing after a meeting with Vice President Kashim Shettima at the Aso Villa, Kyari clarified that the increase was a result of prevailing market conditions.

Independent oil marketers, also confirmed the rise in petrol prices, explaining that any adjustment in the price at NNPC-operated stations indicated a corresponding increase in the pump price of petrol.

The Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abuja-Suleja, highlighted that NNPC remains the primary petrol importer in Nigeria, although other marketers are gradually entering the market.

READ ALSO: Competition heats up in Nigerian petrol market as subsidy removal spurs importer interest

He stated, “The price this (Tuesday) morning at some NNPC stations is N617 per litre.”

The removal of petrol subsidies, as announced by President Bola Tinubu during his inaugural address on May 29, caused the price surge, which soared from N198 per litre to over N500 per litre on May 30, 2023. Marketers have consistently warned that the cost of petrol could further increase to as high as N700 per litre since the subsidy removal and the floating of the naira against the dollar.

Furthermore, the international market’s rise in crude oil prices has contributed to additional hikes in petrol prices, as crude oil serves as the raw material for the production of PMS and other refined petroleum products.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

In response to the news of the price increase at NNPC-operated stations, motorists flocked to filling stations still dispensing petrol at the previous price of N540 per litre in Abuja.

However, as word spread about the price adjustment, many independent outlets closed their stations, while others promptly revised their pump prices to reflect the new rate.

As of now, neither NNPC nor the downstream oil sector regulator has issued an official statement regarding this development.

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