The Nigerian National Petroleum Company Limited (NNPC Ltd) raised the petrol pump price to N1,030 per litre across its outlets in Abuja on Wednesday.
This follows its decision to end its exclusive purchasing arrangement with the Dangote Refinery.
This adjustment opens the market for other fuel marketers to purchase directly from Dangote, departing from NNPC’s previous role as the sole off-taker.
Earlier this week, NNPC announced its plans to end its exclusive supply deal with Dangote Refinery, a move that aligns with Nigeria’s deregulation policies, where fuel refineries and marketers engage directly on a “willing buyer, willing seller” basis.
This shift means that prices will now be market-driven, allowing fuel marketers to negotiate and buy fuel directly from Dangote.
NNPC had been purchasing petrol from the refinery at N898.78 per litre but sold it to marketers at N765.99 per litre, absorbing a subsidy of nearly N133 per litre—a cost the company now finds unsustainable.
Between September 15 and 30, NNPC lifted approximately 103 million litres of petrol from the Dangote Refinery, falling short of the targeted 400 million litres and achieving only 26% of the planned fuel delivery.
News About Nigeria reported that in response to claims by the Muslim Rights Concern (MURIC) alleging NNPC’s monopolistic control of Dangote’s petrol products, NNPC released a statement refuting the accusation.
According to Chief Corporate Communications Manager Olufemi Soneye, the pricing of petroleum products is influenced by global market dynamics rather than NNPC’s control.
The company clarified it would only purchase from Dangote when global prices exceed local pump prices.
Additionally, NNPC said that while it has a huge financial stake in the Dangote Refinery, valued at up to $1 billion, it fully supports a competitive market.
