The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at various outlets in Abuja on Wednesday.
The recent development comes after the NNPC decided to terminate its exclusive purchase agreement with Dangote Refinery.
Nigerian National Petroleum Company Limited (NNPC Ltd) ended its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
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Just last month, NNPC increased the pump price to N855 per litre in Lagos and N897 in Abuja. The company reported that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre.
NNPC however said it could no longer sustain the arrangement.
After visiting several outlets in Lagos, NaijaTimeUSA confirmed that the pump price has jumped to N1,030 from NNPC stations and sold in other independent staions between the range of N1050 – N1075.
