Why NNPC increased petrol prices for third time in 60 days

• The Nigerian National Petroleum Company Limited (NNPC) has raised the price of petrol again
• This is the third time the national oil firm will increase petrol prices in the last 60 days this year
• The development comes as Aliko Dangote, Chairman of the Dangote Group, said that petrol is laying idle at his refinery without patronage

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian National Petroleum Company Limited (NNPC) has once again hiked the pump price of petrol for the third time in 60 days.

The new price, effective immediately, will allow Nigerians in Lagos to buy the product at its outlets for N1,025 per and N1,060 in Abuja, the nation’s capital.

NNPC increases petrol prices again as Dangote invites marketers Credit: Bloomberg/Contributor
Source: Getty Images

Dangote raises alarm over idle petrol at refinery

President of the Dangote Industries, Aliko Dangote, blamed the continued petrol shortages and long queues at filling stations across Nigeria on the inability of marketers to lift products from his $20 billion refinery.

Dangote disclosed this in Abuja on Tuesday, October 29, 2024, stating that the refinery’s capacity can meet Nigeria’s petrol needs, asking oil marketers to move to ease the current petrol scarcity.

Dangote said:

Dangote says he is incurring losses

Dangote further expressed his frustration with the financial impact of storing excess fuel at the refinery, saying that each day petrol sits idle in storage, the refinery incurs losses that he could have reinvested.

He said he is losing the equivalent of 32% interest on the value of the petrol due to distribution delays.

Marketers move to crash petrol prices

Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the current fuel scarcity in Nigeria will end and that the high petrol prices will eventually be reduced.

The national public relations officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said that high petrol prices and scarcity are expected as the country transitions into complete deregulation.

Ukadike said the country is moving from a regulated market to a free one, stating that the Dangote Refinery had been undersupplying the market.

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Source: Legit.ng