NNPCL petrol price increase to N1,030 Per Litre: End of Dangote Refinery Deal Sparks Nationwide Concerns.
NNPCL petrol price increase to N1,030 per litre after ending exclusive deal with Dangote Refinery, causing tension among Nigerians and raising economic concerns.
In a move that has thrown millions of Nigerians into uncertainty,
the Nigerian National Petroleum Company Limited (NNPCL) has once again increased the price of Premium Motor Spirit (PMS), commonly called petrol.
NNPCL petrol price increase, now pegged at N1,030 per litre, represents a sharp jump from its previous rate of N897 in Abuja.
This development comes on the heels of NNPCL’s decision to terminate its exclusive purchase agreement with the Dangote Refinery a game-changing development in Nigeria’s energy landscape.
A Shocking Adjustment: N1,030 for a Litre of Petrol
NNPCL petrol price increase was confirmed by NIGPOST correspondents who visited several NNPCL outlets in the Federal Capital Territory (FCT) on Wednesday.
At these stations, petrol was being dispensed at N1,030 per litre, catching many motorists by surprise.
Previously, the product sold for N897 per litre in Abuja.
This sharp increase of over 14% within a short timeframe has once again ignited fears of economic instability and further inflation in an already struggling economy.
Many Nigerians, especially low- and middle-income earners, have expressed dismay at the sudden hike,
describing it as yet another blow to their purchasing power.
With rising food costs, increasing electricity tariffs, and a weakening naira, the cost of petrol is one more burden for households already stretched thin.
The End of NNPCL’s Exclusive Deal with Dangote Refinery
The most significant backdrop to this price surge is the termination of NNPCL’s exclusive off-take agreement with the Dangote Refinery.
Under this agreement, NNPCL had been the sole buyer of refined petroleum products from the refinery,
which is one of the largest in Africa and a major hope for Nigeria’s energy self-sufficiency.
The end of the deal now means that private marketers are allowed to negotiate directly with the Dangote Refinery.
On one hand, this could improve competition and market freedom. On the other hand, it could also lead to price volatility,
especially in the absence of strong regulation and monitoring mechanisms.
What Does This Mean for Marketers?
With the end of the exclusivity clause, the downstream oil market is now open to a wider range of players.
Independent marketers and other distribution channels can source products from Dangote Refinery without going through NNPCL.
While this could eventually foster competition and potentially drive prices down,
the short-term effects have been the opposite as marketers adjust to new pricing models and logistics.
Prices are now subject to direct negotiation and fluctuating global crude oil rates,
which could make fuel cost less predictable.
Industry insiders believe this shift could mark the beginning of a fully deregulated petrol market in Nigeria.
Lagos Feels the Heat: Fuel Now Selling at N998
In Lagos State, Nigeria’s commercial capital, residents are also feeling the pinch.
Our correspondent visited several filling stations across the city and reported that the pump price has risen to N998 per litre, up from N885 previously.
The NNPCL petrol price increase in Lagos has also led to long queues, with many stations rationing supply or refusing to sell altogether.
Some motorists claimed that they waited for over two hours just to get fuel, while others returned home disappointed.
Station managers say that they are facing supply issues and cost fluctuations from the depot level.
With distributors now sourcing directly from the refinery, inconsistencies in pricing and supply timelines are creating uncertainty for retailers.
Public Reaction: Frustration, Anger, and Confusion
The sudden increase in petrol prices has triggered a wave of outrage on social media platforms.
On Twitter (now X), hashtags like #FuelHike, #NNPCL, and #DangoteRefinery have been trending, with thousands of Nigerians voicing their anger.
Some citizens accuse the government of failing to protect the masses from exploitative practices in the energy sector.
Others point to the removal of fuel subsidies in 2023 as the root cause of Nigeria’s persistent fuel woes.
Reactions from the public include:
“How can we survive in this country? Everything is expensive, and now petrol is over N1,000? God help us.”
“They told us Dangote Refinery would reduce fuel prices. Now that NNPCL is out of the way, things are worse.”
“We need price control or regulation. The market cannot just keep increasing prices endlessly.”
Transportation Costs Set to Skyrocket
Transportation unions have warned that fares will be reviewed upwards if the fuel hike persists.
Already, drivers in Abuja, Lagos, and other major cities have started increasing transport fares by 20% to 30%, citing the increased cost of petrol.
Commuters are bearing the brunt of this adjustment, with many struggling to afford daily transportation to work, school, or markets.
For a country where public transportation is a lifeline for millions, this trend could further widen the gap between the rich and the poor.
Commercial drivers also expressed worry over the long-term effects of sustained high fuel prices on their businesses,
with some saying they might be forced to abandon their vehicles if prices continue to rise unchecked.
Economic Implications: Inflation, Business Struggles, and a Strained Workforce
Economists have warned that the fuel price hike will inevitably drive up the cost of goods and services, fueling inflation that is already at record highs.
Businesses that rely heavily on petrol, such as logistics companies, food vendors, SMEs, and informal traders, may experience increased operational costs.
For example, small shop owners who use petrol generators due to unreliable electricity supply now have to spend significantly more to keep their shops open.
This additional cost is often passed on to consumers in the form of price increases.
Furthermore, with the hike in fuel prices, workers may begin to demand higher wages to offset their increased cost of living a scenario that could lead to labor disputes or even strikes in the coming months.
What is the Government Saying?
At the time of publishing, neither the NNPCL nor the Ministry of Petroleum Resources had released an official statement
addressing the fuel price increase or explaining the implications of the new open-market arrangement.
The silence from the authorities has left many Nigerians frustrated, with some analysts warning that lack of communication could erode public trust in government institutions.
Energy policy experts argue that this moment presents an opportunity for the federal government to outline a clear framework for fuel pricing, market regulation, and consumer protection.
Could Fuel Prices Drop in the Future?
While the current situation is bleak, some experts believe that in the medium to long term, competition in the market could lead to price stabilization or even reduction.
The key, however, lies in transparent regulation, effective monitoring of refineries and marketers, and investment in alternative energy sources.
The Dangote Refinery, with its huge capacity and modern infrastructure, is still considered a significant hope for the nation’s fuel independence.
But for that hope to be realized, there must be proper coordination between stakeholders in the oil and gas sector.
What Can Nigerians Do?
In the face of rising fuel costs, Nigerians are advised to:
Conserve fuel by minimizing non-essential trips.
Carpool or use public transport when possible.
Consider alternative energy sources for home and business use.
Speak up through civil channels to demand transparency and relief measures from authorities.
Support policies and initiatives that promote renewable energy and reduce dependence on petrol.
Conclusion: The Road Ahead
The increase in petrol prices to N1,030 per litre signals a new chapter in Nigeria’s fuel economy one filled with uncertainty, challenges, and potential.
While the end of NNPCL’s exclusive agreement with Dangote Refinery may create space for market liberalization, the short-term effects have been harsh.
Unless immediate steps are taken to address price regulation, improve supply,
and protect vulnerable citizens, the country may face even more economic hardship in the months ahead.
Nigerians, already burdened by inflation, unemployment, and poverty, now have one more challenge to face.
As always, resilience will be key but so too must be accountability from those in power.
What’s your take on the new fuel price? Has it affected your business or daily routine?
Drop your thoughts in the comments and follow NIGPOST for more insightful coverage on Nigeria’s economy, politics, and public affairs.
Author: Ibrahim Sani
Date: May 16, 2025
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