Daily Trust reports that Nigeria National Petroleum Company Limited (NNPCL) pushes fuel price to N1,030 per litre in Abuja, N998 in Lagos. Arbiterz reported yesterday that a source in the NNPCL told Premium Times that the state-owned oil company would no longer subsidise petrol for Nigerian motorists.
Nigeria’s recent decision to sell petrol at ₦1,030 per litre marks a significant shift, signaling the complete removal of the decades-old fuel subsidy. This move follows the Nigerian National Petroleum Company Limited (NNPCL) allowing marketers to purchase refined petrol directly from Dangote Refinery, ending its monopoly as the sole buyer. The subsidy had been a huge financial burden on the government, costing the country up to ₦5.7 billion daily.
For years, Nigeria heavily subsidized fuel to keep prices low for its citizens. However, the soaring costs, compounded by global oil market fluctuations and the country’s limited refining capacity, made maintaining the subsidy unsustainable. The deal with Dangote Refinery allows petrol to be priced closer to market levels, relieving the NNPC and the government of this fiscal load, although the exact mechanisms and long-term effects are still unclear(
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- IPMAN President Says Marketers Meeting With Dangote Refinery to Discuss Petrol Price
- Nigeria May Have Eradicated the Fuel Subsidy As the NNPC Allows Direct Purchase of Dangote Petrol
- Dangote Refinery Vs NNPCL On Pricing : Discord on Petrol Subsidy ?
- Dangote Refinery Selling Petrol to NNPC In Dollars, NNPLC's N898 Price Is "Malicious"
While this is a bold economic step, there remain unresolved questions, such as how the government plans to mitigate the impact on everyday Nigerians and whether this deregulation will lead to further adjustments in the petroleum sector.