Marketers Adjust Pumps as Fuel Price Hits N617/Litre
Petrol prices in some Nigerian National Petroleum Company Limited (NNPCL) filling stations in Abuja surged from N537/litre to N617/litre on Tuesday, leaving independent oil marketers to confirm the increase and indicating a potential rise in the pump price of Premium Motor Spirit (PMS).
The NNPCL remains a major importer of petrol in Nigeria, and any change in its stations’ prices is often an indication of an impending price shift. According to Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria in Abuja-Suleja, the pump price at some NNPCL stations was observed at N617/litre on Tuesday.
This increase comes after President Bola Tinubu announced the end of petrol subsidy during his inaugural address on May 29. Consequently, the price of petrol soared from N198/litre to over N500/litre on May 30, 2023.
Following the subsidy withdrawal and the floating of the naira against the dollar, marketers warned that petrol prices could potentially escalate to as high as N700/litre.
Moreover, the global surge in crude oil prices has also contributed to further petrol price hikes, as crude oil serves as the raw material for producing PMS and other refined petroleum products.
As news of the price increase spread in Abuja on Tuesday, motorists flocked to filling stations that still dispensed petrol at N540/litre. However, many independent outlets had to close their stations, while others quickly adjusted their pump prices to reflect the new rate of N617/litre.
As of now, there has been no official statement from NNPCL or the downstream oil sector regulator regarding this development.
