Nigerians to Suffer More As NNPC Hikes Pump Price

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• NNPC raised the official pump price of petrol in Abuja to N1,030 per litre, marking a 430% increase since the start of the current administration in May 2023.
• The price hike follows NNPC’s financial constraints, with a $6.8 billion debt to international suppliers, and many filling stations have already implemented the new pricing.
• Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, reiterated that the oil and gas sector is fully deregulated, with prices now driven by market forces and no direct government interference in company operations.

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Nigerians to Suffer More As NNPC Hikes Pump Price

On Wednesday 9th, The Nigerian National Petroleum Company Limited (NNPC) increased the official pump price in its retail outlets to N1,030 per litre in Abuja from the N897 it announced on September 3.

The New price hike means that in the less than 17 months of the current Presidents administration, the price of fuel has risen by over 430 per cent from May 29, when it took over the reins of power in 2023

In September, NNPC raised the pump price of petrol to N897 per litre from the official price of N617 it had hitherto sold per litre in Abuja.

It came days after the NNPC said it was heavily constrained by the huge debt it owed international suppliers. The debt is estimated to be $6.8 billion.

It was observed that many NNPC filling stations in Abuja had already effected the prices, with its downstream facilities selling for the new price benchmark. However, independent filling stations are expected to sell for more.

Although it is worth noting that the NNPC does not issue public statements on gasoline price increases, it sends signals directly to depot owners when there is a new price review on petroleum.

At some NNPC filling stations, including the Mega station at Zone 1 and its filling station at Mabushi, the company had already adjusted its pumps to reflect the new price.

Also, recently the NNPC terminated its exclusive purchase agreement with Dangote Refinery, which it earlier reluctantly accepted, thereby opening up the market for other marketers to buy gasoline directly from the refinery.

On Tuesday 8 October, while responding to a different matter, The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, alluded to the fact that the sector is now fully deregulated, with market forces set to determine prices.

According to Senator Heineken Lokpobiri, Minister of State Petroleum Resources (Oil),
“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining.

We encourage companies, including NNPC, to operate independently, following global best practices. While we provide strategic guidance. We do not interfere directly in the operations of these companies,” he said in his report.