The Nigerian National Petroleum Company Limited (NNPC) has adjusted the pump price of Premium Motor Spirit (PMS), commonly known as petrol, from ₦925 to ₦960 per litre, as consumers were seen visible worried at NNPC retail outlet marina, Lagos.
The recent change reflects the impact of market forces and demonstrates the ongoing deregulation of Nigeria’s petroleum sector. This shift, according to industry experts, underscores the government’s commitment to ensuring the sustainability of the fuel supply chain and addressing longstanding issues such as fuel scarcity. Deregulation, widely regarded as a crucial solution to these challenges, is paving the way for a more efficient and transparent market.
Mr Olatide Jeremiah, the CEO of Petroleumprice.ng emphasised that the hike is temporary, attributing it to the lingering effects of global oil market disruptions, including former President Biden’s ban on Russian oil companies. However, optimism remains high following a sharp drop in Brent crude oil prices, which fell to $80 per barrel as Donald Trump assumed office as the 47th President of the United States.
“This adjustment in refinery, depot, and pump prices is a reflection of market realities under a deregulated framework,” said the CEO. “Deregulation offers a long-term solution to fuel scarcity and arbitrary price hikes. We understand the temporary burden on Nigerians, but these measures will stabilise the market and strengthen the sector.”
The NNPC has reassured the public of its commitment to ensuring an uninterrupted supply of petroleum products. With the Dangote Refinery recently commencing loading operations, stakeholders believe Nigeria is positioned to achieve greater energy security, mitigate reliance on imports, and eventually reduce pump prices.
As Nigerians adapt to the new price adjustments, analysts predict a positive impact on the sector in the long run, as the deregulation policy aligns with global best practices and market trends.