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NNPC Ltd mega stations adjust upward fuel pump prices by 6% to N174

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The newly transformed Nigeria National Petroleum Company Limited (NNPC) on Thursday raised price of petrol at its mega filling stations by 6 per cent to N174 per litre.

The hike in the pump price of fuel came a month after the government approved an increase in the freight rate on subsidised imported petrol to help ease distribution challenges as global oil prices rise.

On Tuesday, President Mohammadu Buhari launched a new brand for the hitherto state-run NNPC, which transformed the oil giant into a commercialised entity.

Early in the week, many independent marketers have adjusted their pump prices to between N170 and N190 per litre depending on the locations.

The officially approved price for fuel dispensers is N165 per litre while the agency responsible for domestic fuel pricing is yet to make a categorical announcement on the new adjustment in prices.

While the public awaits government’s official position on the new fuel price, the independent retailers claimed that the increase is to cover the cost of trucking petrol.

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The petroleum regulator, Nigerian Midstream and Downstream Petroleum Regulatory Authority, did not respond to request for comment.

Nigeria, with one of the lowest petrol prices in the world, due to a subsidy, exports crude oil and imports refined petrol, suffering intermittent fuel shortages.

The subsidy has seen the country raise its deficit forecast twice this year and increased borrowing to cover the cost.

In June, Nigeria doubled the freight rate on subsidised imported petrol to N20.46 in a bid to help ease distribution challenges within the country as oil prices soared. But the government did not say how it will be funded.

The government scrapped a plan to abolish petrol subsidy until after national elections in February 2023 and added $9.6 billion to planned spending to cover it, putting pressure on the budget.

The NNPC said last month it spent N1.274 trillion on fuel subsidies in the first five months of this year.

~With agency report

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