Petrol prices skyrocketed across Nigeria on Wednesday, reaching N1,065 per litre in Abuja and N998 in Lagos. The increase followed the Nigerian National Petroleum Company Limited (NNPCL) ending its exclusive supply deal with the Dangote Refinery, allowing independent marketers to negotiate prices directly with the refinery.
The price surge, determined by a joint review between NNPCL and fuel marketers, saw petrol sold between N1,030 and N1,065 per litre in Abuja, N998 in Lagos, N1,025 in other southwestern states, N1,060 to N1,070 in the northeast, and N1,055 to N1,075 in southern regions.
Tensions between NNPCL and Dangote Refinery have been ongoing since the refinery began operations in May. Aliko Dangote, CEO of Dangote Group, stated that NNPCL lost its 20% stake in the refinery due to unmet financial obligations, although NNPCL countered that it had voluntarily reduced its stake.
The pricing debate between the two parties added further complexity. Initially, Dangote Group announced that NNPCL had full control over fuel prices, only to retract the statement. The regulator clarified that prices in a deregulated market are driven by market forces, not NNPCL.
By July, the Federal Executive Council (FEC) intervened, pushing both sides to resolve their disputes. In September, NNPCL projected fuel prices of N950.22 in Lagos and N992.22 in Abuja, reflecting its negotiations with Dangote Refinery. NNPCL confirmed it was paying for fuel in US dollars until Naira transactions resumed in October, with any potential discounts from the refinery to be fully passed on to consumers.
This latest price review came after NNPCL began lifting petrol from Dangote Refinery on September 15, following the dissolution of their exclusive deal.
