A recent report reveals that the price of petrol in Nigeria may rise to N1,300 per litre due to financial challenges faced by the Nigerian National Petroleum Company (NNPC) Limited. NNPC, the sole importer of petrol into Nigeria, has encountered a cash crunch, resulting in a jump in the landing cost of petrol from N720/litre in October 2023 to N1,203/litre.
Industry expert have predicted that if NNPC stops subsidizing petrol prices, the customary pump price will range from N1,300 to N1,350 per litre. However, this does not include charges like Nigerian Port Authority fees, vessel charges, and distribution costs, which are mainly denominated in dollars.
Nigeria is also experiencing falling crude oil production, thus reducing its capacity to import refined products. Independent marketers suggest that private importation should be allowed while fully deregulating the market to relieve NNPC of its financial burden.
Meanwhile, the Dangote refinery has announced the commencement of petrol production, with NNPC being its first exclusive buyer. These developments are expected to ease the pressures faced by NNPC and may provide a solution to the existing fuel crisis within the nation.
