The Nigerian National Petroleum Company Limited (NNPCL) has officially increased the price of premium motor spirit (petrol) to N945 per litre, marking a N50 rise from the previous pump price of N895. This price adjustment was observed across various NNPCL retail outlets in Abuja, including Kubwa Expressway and Wuse Zone 6.
The hike is attributed to rising global oil prices sparked by ongoing geopolitical tensions in the Middle East, with Brent and West Texas Intermediate crude prices surging by nearly 3 percent recently. Additionally, the cost increase coincides with the Dangote Refinery's rise in ex-depot prices to N880 per litre from N825, compelling downstream operators to revise pump prices upward.
Motorists and industry analysts have expressed concerns that the price increment will significantly impact transportation costs, exacerbating inflationary strains on Nigerian households. The NNPCL's pricing decision reflects broader supply chain pressures and currency depreciation challenges faced amid fluctuating crude oil markets.
The fuel price hike comes amid anticipation of new refined product supplies from local refineries, although imported fuel stocks are diminishing. The NNPCL, as a state-owned entity, is navigating through substantial debts and operational challenges while aligning prices closer to market realities.
Commuters and commercial transport operators are bracing for the ripple effects on the economy as fuel prices climb in response to global and domestic influences.