Nigerian National Petroleum Corporation(NNPC), raised petrol prices by 11% on Monday, following the commencement of fuel purchases from the Dangote refinery in Lagos. This marks the second price hike in two weeks.
The Dangote refinery, capable of producing 650,000 barrels of oil per day, is anticipated to put an end to Nigeria’s long-standing dependence on imported gasoline. For years, the government had subsidized fuel prices, but those subsidies were scrapped when President Bola Tinubu assumed office in May 2023.
The latest adjustment sees petrol prices in Lagos rise from 858 naira ($0.53) per litre to 950 naira, with prices reaching 1,019 naira in Nigeria’s northeastern regions. NNPC confirmed that it is buying the fuel from Dangote at 898 naira per litre, with payments currently being made in U.S. dollars, though a naira-based agreement is still under negotiation.
The increase comes at a difficult time, as inflation is running at 33.4%, pushing up the cost of living. Public dissatisfaction is mounting, particularly in light of recent protests over economic conditions.
NNPC’s decision to purchase fuel from Dangote marks a significant milestone. A Nigerian presidential committee revealed on Friday that NNPC would begin distributing Dangote refinery’s fuel to the local market, with an agreement to supply 385,000 barrels of crude daily to the refinery by October. The deal, paid for in naira, aims to boost domestic fuel production and stabilize the market.