By Damilare Adeleye
The issues surrounding the pump price of petrol may be far from over as indications have emerged that the price will likely be increased from N897 to N1,047 or N1,100 per litre at NNPCL retail outlets nationwide.
The indications emerged as the government owned company concluded plans to make another adjustment on prices from Wednesday.
Reliable sources disclosed that the latest development resulted from NNPCL quitting its role as the sole off-taker for petrol from Dangote Refinery, allowing other marketers to negotiate prices directly.
It was reported that NNPCL’s move to end its sole off-taker role was designed to promote competition and improve supply chain stability.
Experts said that with market forces playing a significant role, petrol pump prices in most cities in the country would likely be between N1,200 and N1,500 as actual prices could be even higher, depending on crude oil prices and prevailing exchange rates.
Previously, NNPCL purchased petrol at N898.78 per litre and sold it to marketers at a subsidised rate of N765.99, absorbing a subsidy of about N133 per litre.
Experts believed that NNPCL’s quitting its sole off-taker role may increase fuel prices as the subsidy system is dismantled.
Analysts also said that the latest increase will likely add to public anger because Nigerians are already struggling with inflation of 33.4%, which has driven up transport costs and caused a cost-of-living crisis that led to violent protests in early August.