Petrol prices at various outlets of the Nigerian National Petroleum Company Limited (NNPC Ltd) have surged to N1,030 per litre as of Wednesday. This increase follows the NNPC’s recent decision to terminate its exclusive purchase agreement with Dangote Refinery.
Earlier this week, reports indicated that the NNPC would end its sole off-taker arrangement, a move that now allows other marketers to purchase petrol directly from Dangote Refinery. This shift is expected to enhance market competition and enable marketers to negotiate prices independently.
The change aligns with Nigeria’s move toward a more deregulated petroleum sector, allowing refineries to sell directly to marketers based on a willing buyer, willing seller framework. Industry experts suggest that this could lead to a more dynamic pricing environment and potentially stabilize fuel availability across the country.
As the market adjusts to this new structure, consumers are bracing for fluctuating prices, reflecting the ongoing changes in the country’s oil sector dynamics.
