The Nigerian National Petroleum Company Limited (NNPCL) has announced a new price for petrol, known as Premium Motor Spirit (PMS), which will now cost N1,025 per litre. This increase, up from N980 per litre, was revealed on Tuesday and marks the third adjustment in petrol prices in just two months, specifically September and October 2024.
The latest price hike comes as part of the Nigerian government’s ongoing deregulation policy. This policy allows the price of petrol to change based on market conditions, particularly supply and demand.
However, this decision has raised eyebrows among experts and analysts, who are puzzled by the timing of the increase. They note that crude oil prices in the international market have actually dropped by around 8%. Just recently, the price of crude oil fell from $78 per barrel to $72 per barrel.
Furthermore, petrol prices in the capital city of Abuja have seen a significant rise, with reports indicating that the cost has surged to N1,060 per litre. This inconsistent pricing across different regions raises questions about the effectiveness of the deregulation policy and how it is implemented by the NNPCL and other operators in the market.
Many filling stations operated by NNPCL swiftly updated their prices to reflect the new rate. However, other fuel retailers seem to have been caught off guard by the announcement, as some continue to sell petrol at the older price of N980 per litre. This situation creates confusion among consumers, who are left unsure about what the actual cost of fuel should be.
