Somto BisinaThe price of Premium Motor Spirit (PMS), commonly known as Fuel, has skyrocketed once again in Nigeria. Filling stations operated by the Nigerian National Petroleum Company Limited (NNPCL) in Abuja increased the pump price from N537/litre to N617/litre.
This move has been confirmed by independent oil marketers, who assert that any price adjustment at NNPCL stations indicates an overall rise in PMS prices.
Join our WhatsApp ChannelThe NNPCL remains the major importer of petrol in Nigeria, although other marketers have gradually begun importing the commodity.
Consequently, any changes in pricing at NNPCL stations reverberate across the industry. According to Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Abuja-Suleja, the pump price reached N617/litre at some NNPCL stations on Tuesday morning.
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The increase in fuel price follows President Bola Tinubu’s announcement on May 29 that the subsidy on petrol had been terminated.
This decision led to a surge in the commodity’s price from N198/litre to over N500/litre on May 30, 2023. Marketers had already warned that the removal of subsidies and the floating of the naira against the dollar could potentially drive the cost of PMS as high as N700/litre.
The surge in crude oil prices on the international market has also contributed to the further escalation of petrol prices. Crude oil serves as the primary raw material for the production of PMS and other refined petroleum products. As the cost of crude oil rises, it inevitably influences the price of petrol and impacts consumers at the pump.
In response to the sudden price hike, motorists flocked to filling stations that were still dispensing petrol at the previous rate of N540/litre.
However, as news of the NNPCL price adjustment spread, many independent outlets had to shut down their stations. Meanwhile, other stations promptly recalibrated their pumps to reflect the new price.
As of now, neither the NNPCL nor the downstream oil sector regulator has issued any official statement regarding this development.
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