Transportation costs are set to rise sharply following a significant hike in petrol prices by the Nigerian National Petroleum Company Limited, NNPCL.
On Wednesday, petrol prices at NNPCL stations in the Federal Capital Territory jumped from N897 to N1,030 per litre, representing a 14.8% increase.
At an NNPCL mega station in the Central Business District, a customer expressed frustration, noting the lack of transparency as the price was neither displayed on the signboard nor the pump meter. “I only found out after waiting in line that the price had risen to N1,030,” said the aggrieved customer.
Similarly, filling stations in Lagos, operated by NNPCL have quietly adjusted their fuel pump prices to ₦998 per litre. While the publicly displayed price remains at ₦885, motorists at the pumps are met with the actual price of ₦998.
This hike is forcing independent marketers in Lagos to sell at ₦1000 and above, with some predicting prices could soar even higher. In more remote areas like the Southeast, South-south, and Northern regions, petroleum could reach between ₦1200 and ₦1300 per litre, deepening the fuel crisis across the country.
While NNPCL stations have seen this significant price hike, independent marketers, including Conoil and Total Energies, were selling petrol for N926 per litre, albeit with long queues.
This price hike marks the second increase within a month, adding strain to consumers already grappling with high transportation costs. The NNPCL had previously reported that it was buying petrol from the Dangote Refinery at N898.78 per litre, selling to marketers at N765.99 per litre, and covering a subsidy of about N133. However, the company has declared that the arrangement is no longer sustainable.
READ ALSO : NNPCL attributes fuel price hikes to forex shortage, cites non-availability as key factor
Records show that NNPCL lifted about 103 million litres of petrol from the Dangote Refinery between September 15 and 30, only achieving 26% of its intended capacity, as logistics issues hampered full-scale distribution. This has further compounded the supply challenges, contributing to the recent price hikes.
Credible News recalls that in September, NNPCL, had attributed the surge in fuel prices across the country to a shortage of foreign exchange. Executive Vice President of Downstream at NNPCL, Mr Adedapo Segun said the exchange rate has played a significant role in shaping the cost of petrol, a situation further exacerbated by limited access to foreign exchange.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPCL. Additionally, the exchange rate plays a significant role in influencing these prices,” Segun said.
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