Long queues have returned at filling stations across the country, as the Nigerian National Petroleum Company Limited (NNPCL) has once again raised the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to a record N1,030 per litre.
The Nigerian Economy reports that at several of NNPCL outlets in Abuja the meter was fixed at N1,030 per litre on Wednesday.
The report of fuel price increase quickly reverberated across the country on Wednesday, leading to long queues at filling stations in Lagos, Port Harcourt and other major cities and marketers reacted to the new pump price. Many filling stations were closed after the new broke.
The NNPCL had recently disclosed that it had accumulated a staggering $6 billion in debt, adding further pressure to the already strained fuel market.
This price increase follows an earlier NNPCL’s decision to terminate its exclusive purchasing agreement with Dangote Refinery. The termination of the exclusive deal now allows marketers to negotiate prices directly with Dangote Refinery, which has previously been NNPCL’s sole supplier.
An NNPCL representative stated, “Ending the exclusive agreement provides more flexibility for independent marketers and could help stabilise supply in the long term.”
Fuel prices in the Federal Capital Territory (FCT) have soared from N897 per litre, while in Lagos, the previous price of N885 has now risen to N998 per litre. Other filling stations around Lagos sold for as high as N1,050 per litre before the Wednesday increase.
These hikes have led to long queues at filling stations across these cities, adding pressure on consumers already affected by the cost of living.
The Federal Government had on Monday said it was set to deliver up to 400,000 barrels of Nigerian crude oil daily to the Dangote refinery under its naira-for-crude agreement, signaling a season of reprieve for citizens before the sad news of fuel price increase broke on Wednesday.
It said this significant development is expected to take place over the next two months, amounting to 24 million barrels of Nigerian supply between October and November 2024.
This increase in processing capacity could have substantial implications for both the refinery’s operations and the local oil industry, transforming the region’s import and export markets.
