Petroleum marketers have confirmed that the recent fuel price hike by the Nigerian National Petroleum Company Limited (NNPCL) is due to the complete removal of subsidies on Premium Motor Spirit (petrol).

Freeman Chukwuka Ibekwe – Abuja

 NNPCL has raised the pump prices to ₦1,030 per litre in Abuja, the Federal Capital Territory, and ₦998 per litre in Lagos.

This clarification came from spokesperson for the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, during an interview with Online Media on Wednesday.

Ukadike’s comments were in response to the latest price adjustment at NNPC stations, which increased from ₦897 per litre to ₦1,030.

This hike follows a previous increase by NNPCL, where the pump price jumped from ₦617 to ₦897 per litre.

Ukadike said, “It is a price template that shows that the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act have taken off.

Local News Network (LNN) reported earlier that NNPCL pulled out of an exclusivity “middleman” arrangement with Dangote for the sale of Petrol

“With this, I don’t think there is anything like a subsidy on petroleum products now. NNPCL is now selling as they are buying from Dangote Refinery. NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship. We are embracing the new NNPCL price template.”

However, Ukadike mentioned that neither NNPCL nor Dangote Refinery has yet disclosed their ex-depot prices, which are essential in determining the resale price for marketers.

“Although they have not released their ex-depot prices, we are waiting for NNPCL’s ex-depot prices. Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will now choose where to buy our petroleum products and stock our filling stations,” he concluded.

Local News Network

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