The Nigerian National Petroleum Company Limited (NNPC) has announced a significant increase in petrol prices in Abuja, with the new rate now set at ₦1,030 per litre, reflecting a 14.8% hike from the previous price of ₦897 per litre. This adjustment is notable as it marks the second increase within a month, following the substantial jump in September when prices rose from ₦615 to ₦897 per litre, causing concern among the populace.
As citizens continue to grapple with the economic implications of these frequent price hikes, the atmosphere at various filling stations has been charged with frustration and anxiety. During a recent visit to the NNPC mega station in Abuja, a reporter from Vanguard noted the visible discontent among drivers, many of whom expressed their worries regarding the escalating costs of fuel and the subsequent impact on their daily lives.
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One taxi driver, Usman Abah, voiced his frustration, stating, “It’s beyond belief. I have been in the queue for almost an hour and I didn’t know they had increased the price. Tinubu is not concerned about our suffering.” His remarks underscore the growing discontent among citizens facing the pressures of rising fuel costs amid broader economic challenges.
This latest price adjustment is part of a broader strategy by NNPC, following their decision to end the exclusive purchase agreement with Dangote Refinery. The termination of this agreement, effective Monday, now permits other marketers to source petrol directly from the refinery, which marks a significant shift in the market dynamics for fuel distribution in Nigeria.
With this change, NNPC is no longer the sole off-taker of petrol from Dangote Refinery, which allows various marketers the flexibility to negotiate prices directly with the refinery. This move is seen as a step towards a more deregulated market practice, enabling refineries to operate on a “willing buyer, willing seller” basis. Such a shift aims to foster a more competitive environment in the fuel sector, though it also raises concerns about the potential for further price increases as market forces come into play.