The NNPC has raised petrol prices across Nigeria to between N855 and N897 per litre. The Nigerian National Petroleum Company Limited has increased the price of Premium Motor Spirit (PMS) from N568-N617 per litre to N855-N897 per liter.
This development is said to take effect on September 3, 2024. The NNPC’s fuel costs vary depending on location, with Lagos usually having the lowest price.
Internal communication reportedly emanating from the oil company said, “This is to inform you that NNPC Retail Management has approved upward review of PMS pump price from N617/itre to N897/litre effective today, 3rd September, 2024. Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter.”
However there has been no official confirmation from NNPC. While the NNPC filling station on Awolowo Road, Ikoyi, Lagos, is selling at N855 per litre, an NNPC station in Ibadan displayed N865 per litre.
The hike means that consumers will now pay much more at the pump. This price increase is also likely to have a wide-ranging economic impact, affecting transportation expenses as well as the prices of goods and services throughout the country.
This event comes just a few days after the NNPC announced that it is facing serious financial issues as it tackles increasing debt to petrol suppliers. In a press statement issued on Sunday by Olufemi Soneye, Chief Corporate Communications Officer, the NNPC confirmed stories in national newspapers concerning its large financial commitments.
The corporation acknowledged that the financial hardship has put significant strain on its operations, putting a risk to its capacity to maintain constant gasoline delivery across the country.
“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.
As the nation’s principal fuel supplier, NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). The company reaffirmed its commitment to this duty, despite the current challenges, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”
Recently, the NNPC revealed a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, marking a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported for 2022. The company had also declared a substantial final dividend of ₦2.1 trillion.
This, however, is at variance with its declaration of facing financial challenges.
