- The development has sparked outrage and condemnation among Nigerians, with many describing it as insensitive
Petroleum marketers have revealed the real reason behind the latest increase in price of petrol by the Nigerian National Petroleum Company Limited.
Recall that the NNPCL on Wednesday announced a fresh hike in petrol prices which will now see the product sell for N1,030 and N998 per litre in Abuja, Federal Capital Territory, and Lagos State respectively.
The upward review of pump price from N897 per liter to N1,030 came mere weeks after NNPCL increased its fuel pump price to N897 per liter from N617.
The development has sparked outrage and condemnation among Nigerians, with many describing it as insensitive and would further worsens the harsh economic realities and the cost of living crisis Nigerians are already grappling with.
Reacting to the development, petroleum marketers said the increment meant that the Nigerian government has completely removed the subsidy on Premium Motor Spirit (petrol).
The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, disclosed this in an interview with DAILY POST on Wednesday.
He said the new pricing model indicated total deregulation of the downstream sector and the implementation of the Petroleum Industry Act.
Ukadike said, “It 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. NNPCL is now selling as they are buying from Dangote Refinery. NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship. We are embracing the new NNPCL price template.”
He, however, added that NNPCL and Dangote Refinery are yet to release their petrol ex-depot prices, which will determine whether marketers will sell the product.
“Although they have not released their ex-depot prices, we are waiting for NNPCL’s ex-depot prices. Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will now choose where to buy our petroleum products and stock our filling stations,” he told DAILY POST.
This comes as a report emerged that Dangote Refinery had increased its petrol price to N977 per liter from N898, according to industrial sources familiar with the development.
However, Dangote Refinery has not released a statement on its petrol price as of filing this report.
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