The launch of Premium Motor Spirit (PMS) production by the Dangote Petroleum Refinery has been overshadowed by a sudden increase in petrol prices at Nigerian National Petroleum Company Limited (NNPC) stations nationwide.
The NNPC increased the pump price to N855/litre, sparking panic buying and long queues at filling stations. The price hike has also led to black marketers selling petrol at exorbitant prices, with some selling five litres for N15,000.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that they had yet to receive any notice on the price of petrol from the Dangote Refinery. “We had expected Dangote to open up the market for proper competition,” said IPMAN’s National Publicity Secretary, Ukadike Chinedu.
The Dangote Petroleum Refinery has commenced petrol production, with plans to supply 25 million litres of PMS daily in September. However, the refinery has announced that only the NNPC will lift the product at the moment.
The NNPC’s decision to increase petrol prices comes barely two days after the company admitted to facing challenges in importing fuel due to a $6bn debt. The NNPC spokesperson, Olufemi Soneye, declined to comment on the matter.
There are strong indications that the price of petrol may hit N1,200/litre, following the NNPC’s decision to raise the pump price. Depot operators have confirmed that N250 has been added to the pump price, leading to a surge in prices at filling stations.
