The full deregulation of Nigeria’s downstream oil sector has taken effect, with the Nigerian National Petroleum Company Limited (NNPCL) raising its petrol pump price to N998 per litre in Lagos and N1,030 in Abuja. This increase comes after last month’s prices of N855 in Lagos and N916 in Abuja.
The price hike follows NNPCL’s recent purchase of petrol from Dangote Refinery at N977 per litre, with N21 added for costs and taxes. Unlike in previous months, NNPCL is no longer absorbing any shortfalls, as confirmed by sources within the company.
“What we announced is based on Dangote pricing. It is N977 per litre that NNPCL buys from the refinery. When the pump price is reduced by the refinery, NNPCL will reduce it,” an NNPCL source explained.
This increase has sparked concern, especially after President Bola Tinubu’s directive that crude be sold in naira to Dangote and modular refineries from October 1. However, the Ministry of Finance or the Federal Inland Revenue Service (FIRS) has yet to clarify the impact of the naira-based crude sale on the pricing.
According to the Lagos Chamber of Commerce & Industry (LCCI) Director General, Chinyere Almona, many Nigerians had anticipated a reduction in pump prices with the commencement of naira-crude sales to Dangote Refinery. However, the crude currently being used by the refinery was bought at international rates, meaning the pricing is subject to market forces. Almona noted that the removal of fuel subsidies has further exacerbated the situation, causing the price of petroleum products to rise.
Centre for the Promotion of Private Enterprise (CPPE) CEO, Dr. Muda Yusuf, also expressed concern, stating that full deregulation should have considered the social, economic, and political consequences. He argued that more measures should have been put in place before the deregulation was implemented.
The Nigeria Labour Congress (NLC) strongly condemned the price hike, warning that it would deepen poverty, reduce production capacity, and lead to job losses. NLC President Joe Ajaero criticized the government’s approach, stating, “It looks like the only thing this government is known for is an increase in the pump price of petrol without commensurate capacity of Nigerians or mitigating measures.”
Ajaero urged the government to reverse the latest price increase and present a clear blueprint for inclusive economic growth. He also called for an end to “ad hoc” policies and palliatives, stressing that previous price hikes had failed to improve the lives of Nigerians, instead worsening their economic conditions.
