AFRICA

NNPC Increases Petrol Prices Across Nigeria, N855/Litre in Lagos

The Nigerian National Petroleum Company Limited has raised the price of Premium Motor Spirit (PMS) from its former prices of between N568-N617 per litre to between N855- N897 per litre. This development is said to be effective from September 3, 2024. 

The NNPC’s fuel prices usually differ, depending on location, with Lagos usually having the cheapest price.

Internal communication reportedly emanating from the oil company said, “This is to inform you that NNPC Retail Management has approved upward review of PMS pump price from N617/itre to N897/litre effective today, 3rd September, 2024. Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter.”

However there has been no official confirmation from NNPC. 

While the NNPC filling station on Awolowo Road, Ikoyi, Lagos, is selling at N855 per litre, an NNPC station in Ibadan displayed N865 per litre.

The increase marks a substantial change for consumers, who will now be paying significantly more at the pump. This price hike is also expected to have a widespread impact on the economy, affecting transportation costs and the prices of goods and services across the country.

This development comes few days after the NNPC said it is grappling with severe financial challenges as it battles mounting debt to petrol suppliers. In a press statement released on Sunday by the Chief Corporate Communications Officer, Olufemi Soneye, NNPC acknowledged reports circulating in national newspapers about its significant debt obligations.
The company revealed that the financial strain has placed immense pressure on its operations, posing a potential threat to its ability to maintain consistent fuel supply across the country.

“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.

As the nation’s principal fuel supplier, NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). The company reaffirmed its commitment to this duty, despite the current challenges, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”

Recently, the NNPC revealed a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, marking a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported for 2022. The company had also declared a substantial final dividend of ₦2.1 trillion.

This however is at variance with its declaration of facing financial challenges. 

Melissa Enoch

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