President Bola Tinubu’s administration has announced a sharp increase in petrol prices, with Abuja residents now paying N1,030 per litre, up from the previous N897.
In Lagos, the price has also risen from N885 to N998 per litre. This development comes amidst severe economic hardship, sparking frustration and long queues at petrol stations.
A Daily Trust correspondent observed queues at an NNPC station in Maitama, where motorists expressed concerns over the hike. At another station in Gudu, attendants delayed sales, awaiting meter adjustments to reflect the new price of N1,030 per litre.
This price surge follows the Nigerian National Petroleum Company Limited’s (NNPCL) decision to withdraw from its role as a middleman in transactions with the Dangote Refinery. Previously, the NNPCL absorbed a subsidy of N133 per litre, bridging the gap between the refinery’s price and the pump price. Now, independent marketers will directly negotiate prices with Dangote Refinery under a “willing buyer, willing seller” model, similar to other deregulated fuels like diesel and kerosene.
The move is seen as a pivotal step toward full oil market deregulation. According to NNPCL, the subsidy system was no longer sustainable, with an official stating, “We can no longer continue to bear that burden.”
This shift follows Tinubu’s removal of the fuel subsidy in May 2023, which has since led to skyrocketing petrol prices, contributing to the nation’s ongoing economic challenges.
