A fresh hike in petrol prices has hit consumers as the Nigerian National Petroleum Company, NNPC, Limited raised the cost of Premium Motor Spirit to N950 per litre in Abuja. In Lagos, the price was adjusted to N925 per litre at NNPC retail outlets, reflecting rising market pressures.

On Wednesday, April 2, the national oil company increased petrol prices from the previous N880 per litre in the Federal Capital Territory. This marked a N70 rise in Abuja, while Lagos residents saw a N65 increment.

The latest adjustment comes amid price hikes at several filling stations, following the Dangote refinery’s decision to suspend sales of petroleum products in naira. This move is linked to stalled negotiations on a naira-for-crude agreement between the refinery and the federal government.

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Dangote refinery, alongside other local refiners, had reached a deal with the government last year to trade petroleum products in naira. The arrangement aimed to reduce foreign exchange pressure on fuel imports and stabilize pricing within the country.

However, the expiration of the initial agreement on March 20 has stalled fresh negotiations, prompting Dangote refinery to seek crude oil from international markets. This shift has influenced domestic fuel pricing, with ripple effects seen in the latest NNPC price adjustments.

As discussions on a renewed contract continue, motorists and businesses brace for potential economic impacts. The price surge of petrol adds to inflationary concerns, as fuel costs play a crucial role in transportation, production, and overall living expenses.

Crediblenewsng.com