NNPCL raises petrol price to N1,270 despite crude drop

The Nigerian National Petroleum Company Limited, NNPCL, as increased the pump price of Premium Motor Spirit, popularly known as petrol, to N1,270 per litre from N1,250 in Abuja and its environs.

The N20 increase came despite the Dangote Petroleum Refinery’s expansion of its free petrol delivery initiative and a decline in international crude oil prices.

A market survey conducted in Abuja on Tuesday showed that NNPCL retail outlets had adjusted their pump price to N1,270 per litre, making the state-owned company’s filling stations among the more expensive outlets in the Federal Capital Territory.

The latest adjustment has further widened the price gap among filling stations across Abuja, with different marketers selling petrol at varying prices depending on their supply arrangements and operating costs.

The NNPCL increase also comes as the Dangote Refinery expands its free petrol delivery initiative to 10 destinations across Nigeria, including Abuja.

Under the initiative, petrol is reportedly supplied at N1,185 per litre, a price significantly below the N1,270 being charged at NNPCL outlets.

The development is expected to intensify competition among fuel marketers and give motorists more options as retailers respond to changing supply conditions.

Meanwhile, MRS filling stations have also increased their petrol price by N20, taking the company’s pump price to N1,230 per litre.

Following the latest adjustments, NNPCL’s N1,270 per litre price is between N15 and N40 higher than the prices recorded at MRS, Geregu, Ranoil, Emedab, Mobil and other filling stations in Abuja and neighbouring areas.

However, some marketers are selling above the NNPCL rate.

Filling stations operated by Empire and AA Rano were dispensing petrol at prices ranging from N1,275 to N1,299 per litre.

Consequently, motorists in Abuja and its environs are currently paying between N1,230 and N1,299 per litre for petrol, depending on the filling station.

The widening price differences highlight the changing dynamics of Nigeria’s downstream petroleum market following the increase in domestic refining capacity and the growing competition among suppliers.

The latest petrol price adjustment also comes against the backdrop of falling international crude oil prices.

At the time of the report, Brent crude was trading at about $88.80 per barrel, while West Texas Intermediate stood at approximately $81.86 per barrel.

The movement in pump prices despite the decline in crude prices reflects the complex pricing dynamics in the downstream market, where domestic supply arrangements, distribution costs and competition among refiners and marketers continue to influence retail prices.

With the Dangote Refinery expanding its supply and distribution network, motorists and other petroleum consumers are expected to continue monitoring pump prices as competition intensifies across the country.