The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at various outlets in Abuja on Wednesday.
This new price hike followed NNPC’s decision to terminate its exclusive purchase agreement with the Dangote Refinery.
NNPC had on Monday ended the initial agreement, paving the way for other marketers to directly purchase petrol from the refinery.
With this, NNPC is no longer the sole off-taker as marketers are now free to negotiate prices directly with the Dangote Refinery.
This shift aligns with the current practices of fully deregulated products, enabling refineries to sell to marketers on a “willing buyer, willing seller” basis.
Just last month, NNPC increased the pump price to N855 per litre in Lagos and N897 in Abuja.
The company reported that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre.
NNPC however said it could no longer sustain the arrangement.