The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol, from N537 to N617 per liter. The pump price of petrol is also known as Premium Motor Spirit (PMS).
This adjustment was observed at some filling stations in Abuja and is expected to be implemented nationwide. The decision by NNPCL indicates an increase in the pump price of petrol.
According to Mike Osatuyi, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the price increase was inevitable due to the rise in the ex-depot price.
The ex-depot price is the price at which marketers purchase petroleum products from depots, and it influences the selling price to consumers. Osatuyi explained that the increase in ex-depot price necessitated the upward adjustment in the pump price.
Osatuyi also mentioned three factors contributing to the fuel price increase.
- Firstly, there has been a recent increase in crude oil prices in the international market.
- Secondly, the exchange rate between the Nigerian Naira and the US Dollar is another factor affecting the pump price.
- Lastly, there are challenges related to the supply of petroleum products.
It is projected that fuel prices in northern states such as Sokoto and Maiduguri could reach as high as N640 per liter.
The Nigerian government has identified over 9,000 licensed filling stations across the country that are suitable for co-locating facilities to dispense autogas fuel.
Autogas is an alternative fuel used for vehicles, which is considered cheaper and more environmentally friendly.
The government is trying to encourage people to use autogas as a transport fuel in Nigeria. The government is also providing technical support and facilities to develop and encourage its adoption.