The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of petrol to ₦889 per litre, a move that has sparked mixed reactions across the country. While the reduction from previous highs may seem positive, many Nigerians remain apprehensive due to broader economic pressures and the looming impact of a 15% fuel import duty recently approved by President Bola Tinubu Daily Post Nigeria TheCable businessnewsng.com Vanguard News.
Key developments:
The ₦889/litre rate applies primarily to Lagos, while other cities like Warri, Port Harcourt, and Calabar are seeing depot prices around ₦970/litre Vanguard News.
The price adjustment follows similar moves by Dangote Refinery, which also set its depot price at ₦889/litre, intensifying competition in the deregulated downstream sector TheCable businessnewsng.com.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the price shift as a response to market dynamics, but warned that retail prices could still climb due to the new import duty Daily Post Nigeria.
Joseph Obele, PETROAN’s spokesperson, noted:
“The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.”
However, analysts caution that the 15% ad valorem import duty on petrol and diesel could push pump prices above ₦1,000/litre, especially in regions reliant on imported fuel Daily Post Nigeria.
The combination of deregulation, import levies, and inflation has left many Nigerians worried about affordability and access to energy. Transport costs, food prices, and household expenses are expected to rise further, compounding the hardship already felt since the removal of fuel subsidies.
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