As Nigeria grapples with economic hardship, the Nigerian National Petroleum Company Limited (NNPC) is poised to implement a new petrol pricing regime that could see prices soar to ₦1,350 per litre. This development follows the recent lift of approximately 103 million litres of petrol from the Dangote Refinery between September 15 and 30, 2024. Sources close to the situation revealed these details to PREMIUM TIMES, highlighting the economic reality facing Nigeria.
Limited Supply And Rising Cost.
The Dangote Refinery, which loaded only 2,207 of the 3,621 dispatched trucks, managed to supply just 26% of the planned 400 million litres of petrol. This shortfall underscores the ongoing supply challenges exacerbating the country’s energy crisis. NNPC, initially the sole off-taker, lifted petrol at ₦898.78 per litre and sold it at ₦765.99 per litre, effectively subsidizing the product by nearly ₦133 per litre.
Despite NNPC’s efforts, petrol prices at stations have fluctuated between ₦855 and ₦897 per litre, depending on location. As NNPC exhausts its imported petrol stock and becomes increasingly reliant on Dangote Refinery, experts warn that petrol prices will inevitably rise to account for depot sale prices, statutory charges, and regional distribution challenges.
Economic Hardship and Inflation.
The anticipated price increase comes at a time when Nigerians are already facing significant economic hardships. With inflation rates soaring and the naira depreciating against the dollar, the cost of living has become a pressing concern for many citizens. The rise in petrol prices will likely exacerbate these challenges, as transportation costs increase and impact the prices of goods and services across the country.
Regional Price Variations.
The NNPC’s pricing template from September 16 outlined regional variations in petrol prices, with Lagos stations expected to charge ₦950.22 per litre, while Rivers State and Abuja stations could see prices of ₦980.22 and ₦992.22, respectively. In the North-West, prices might rise to ₦999.22, and in Borno and other North-Eastern states, they could reach ₦1,019 per litre. The South-East might see prices at ₦980.22, and the South-West (Oyo, Ogun, Ekiti, Osun, Ondo) could face prices of ₦960.22 per litre.
Impact of Global and Domestic Factors.
NNPCL insiders have indicated that these estimates are now outdated, given the recent fluctuations in the foreign exchange market and the rise in global crude prices, driven by escalating tensions in the Middle East. With crude oil trading above $78 per barrel and the naira exchanging at ₦1,660 to a dollar, the projected pump price of ₦1,350 per litre appears inevitable.