The recent increase in the pump price of petrol by the Nigerian National Petroleum Company Limited (NNPCL) to N1,030 per litre reflects ongoing changes in the petroleum market, particularly following the termination of its exclusive purchase agreement with Dangote Refinery. This move allows other marketers to negotiate prices directly with the refinery, which could lead to more fluctuations in fuel prices as competition increases.
As this situation develops, it will be important to monitor how it affects fuel availability and consumer prices across the country.
As a result of this decision, the NNPC will no longer hold the position of the sole off-taker for refined products from Dangote Refinery. Instead, other marketers are now allowed to negotiate prices directly with the refinery, potentially leading to increased competition and variability in fuel prices. This shift could have significant implications for consumers and the overall fuel market in Nigeria.
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