In a recent development, the Nigerian National Petroleum Corporation (NNPC) has finally implemented the much-anticipated increase in petrol prices.
This move comes after the removal of the controversial subsidy, which had been costing the country nearly $10 billion annually.
As per the latest intervention, NNPC’s retail outlets in Lagos will now sell fuel at N488 per litre, while the Port Harcourt branch will be selling at N511 per litre starting today.
Under the new price regime, the NNPC station in Oyo will retail the product at N500, Kano at N540, Ogun and Edo at N511, and Akwa Ibom at N515.
Being the sole supplier of petrol in Nigeria, NNPC’s price adjustments are expected to influence other marketers who will likely follow suit by adjusting their pump prices accordingly.
Industry analysts suggest that the differential pump prices for various cities indicate not only the end of the subsidy era but also the elimination of the inefficient price equalization mechanism.
Previously, petrol had the same official price across the entire country.
The specific foreign exchange (FX) rate used by NNPC to determine its pump price remains unclear. However, it is speculated that the rate could be around N600/$.
President Bola Tinubu, who assumed office on Tuesday, engaged in a lengthy discussion with the CEO of NNPC and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, regarding the contentious issues of fuel subsidy and the multiple foreign exchange rates.
Tinubu had previously announced the elimination of the subsidy in his inauguration speech and mandated the CBN to abolish the multiple exchange rates regime.
Please refer to the complete price template below for more details.
