Retail outlets owned by the Nigerian National Petroleum Company Limited (NNPCL) raised petrol prices again on Wednesday, this time affecting stations in Lagos and the Federal Capital Territory (FCT), Abuja.
In Lagos, it was observed that many NNPCL stations were selling petrol at ₦998 per litre, which is ₦150 higher than the previous price of ₦855.
This sudden price increase led to long queues at various NNPCL outlets in Lagos, including stations at Abule-Egba, U-turn, and Abbatoir, as motorists and transporters rushed to stock up on fuel. Private filling stations quickly followed suit, with some selling petrol for as much as ₦1050 per litre in different parts of Lagos.
In Abuja, the situation mirrored Lagos, with NNPCL stations increasing their petrol prices from ₦897 to ₦1,030 per litre. This price hike came shortly after the previous increase on September 2, 2024, when the NNPCL raised the price from ₦568 to ₦855 per litre, causing widespread public outrage.
Since President Bola Tinubu’s declaration in May 2023 that fuel subsidies were removed, petrol prices have continued to rise, starting from ₦184 per litre in Lagos to now reaching ₦998. Although there has been no official announcement from NNPCL regarding this latest price increase, signs of a potential hike emerged in mid-September when the company began loading petrol from the Dangote Refinery.
At that time, NNPCL stated that it had purchased petrol from Dangote Refinery at ₦898 per litre and intended to sell it at ₦950 in Lagos and ₦1,019 in Borno. However, Dangote Refinery denied selling petrol to NNPCL at ₦898 per litre. Despite the denial, NNPCL insisted on its pricing and even released a breakdown of the costs for petrol sourced from Dangote.
The Dangote Refinery, valued at $20 billion, started operations in December 2023 in Lagos with an initial production capacity of 350,000 barrels per day. The refinery aims to reach full production capacity of 650,000 barrels per day by the end of 2024. It has already begun supplying diesel and aviation fuel to local marketers, with petrol now joining the list.
Nigeria, the most populous country in Africa, continues to struggle with energy challenges. Its state-owned refineries remain non-functional, making the country heavily reliant on imported refined petroleum products, with the NNPCL being the primary importer.
Fuel shortages and long queues are common across the country, and since the removal of fuel subsidies in May 2023, the price of petrol has surged from around ₦200 per litre to over ₦1000 per litre.
This has added to the difficulties faced by Nigerians, many of whom rely on petrol for powering vehicles and generators due to the country’s unreliable electricity supply.
