The Digest:
The Nigerian National Petroleum Company (NNPC) Limited has increased the pump price of petrol to N835 per litre in Lagos and N839 per litre in Abuja. The adjustment represents a N50 increase in Lagos and a N20 increase in the capital. This follows a recent price hike by the Dangote refinery, which raised its ex-gantry price to N799 per litre, with retail prices at affiliated stations rising to N839. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that sustained competition, not subsidies, will ensure an affordable and stable supply in the market.
Key Points:
- The increase raises transportation and logistics costs, affecting prices of goods and services nationwide.
- Household budgets will be further strained, reducing disposable income for essential needs.
- Refinery-led pricing shifts market influence toward private players, reducing NNPC’s price control.
- The move underscores the continued volatility in Nigeria’s deregulated petrol market.
- Timing coincides with broader economic pressures, amplifying public frustration over living costs.
Market-led pricing may stabilize over time, but immediate effects will deepen financial pressure on consumers.
Sources: TheCable, NMDPRA, NNPC
