- NNPC raises petrol price to N990 in Abuja, N965 in Lagos
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has announced the approval of a licence for the construction of a new refinery.
The approval was given to MRO Energy Limited, an energy company for the construction of a 10,000 Barrels Per Stream Day Refinery at Imode in Ughelli, Delta State.
This development comes two months after the authority granted a license to Process Design and Development Limited to establish and construct a new 27,000 barrels per day refinery located in Dole-Wure, Akko area of Gombe State.
The authority in a post on its official X handle on Tuesday, said, “The Authority Chief Executive, Engr. Farouk Ahmed presented a Licence to Establish a 10,000 Barrels Per Stream Day Refinery at Imode In Ughelli, Delta State, to MRO Energy Limited.”
The latest development signifies that Nigeria now officially has about 11 modular and regular refineries, adding to the nation’s refining capacity.
Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria announced a collaboration with its partners, which is set to establish a new refinery with an initial capacity of 50,000 barrels per day.
However, despite this increase in the number of refineries, most of them remain moribund, with many not functioning at full capacity or efficiently.
The Nigerian Upstream Petroleum Regulatory Commission has fixed 770,500 billion of oil per day for domestic refineries.
NNPC raises petrol price to N990 in Abuja, N965 in Lagos
In a related development, retail outlets owned by the Nigerian National Petroleum Company Limited have effected an upward adjustment in the pump price of the Premium Motor Spirit, also known as petrol, from N965 to N990 per litre in the Federal Capital Territory.
The new price template effected nationwide on Tuesday also increased NNPCL price in Lagos from N925 to N960 per litre.
Checks at some of the filling stations indicated that the price has been adjusted.
The amount is N20 or 2.1 per cent more than the N970 retail price announced by the Dangote Refinery in partnership with MRS filling station, Ardova, and Heyden.
The price adjustment reflects ongoing market dynamics and aligns with the deregulation policy in the petroleum sector, which allows prices to fluctuate based on supply and demand.
This increase follows recent developments in the sector, including the commencement of loading operations at the Dangote Refinery, expected to reshape the fuel supply chain in Nigeria.
On Friday, the pump prices of petrol rose to between N1, 050 and N1, 150 per litre following the hike in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners.
The $20bn plant raised its PMS from N899/litre to N955/litre at its loading gantry.
Dealers confirmed that PMS prices would continue to rise since the major component in fuel production, crude oil, has been on the upward swing lately.
At an NNPCL outlet at Airport Junction, Abuja, it was observed that the station sold at N990 per litre from N965 it sold on Monday.
Another station at Life Camp listed its products at N970 per litre but was not selling to waiting customers.
Another station at Mabuchi was still selling at its previous price of N965 per litre.
Meanwhile, major and independent marketers have increased petrol prices to a peak cost of N1, 030 per litre.
It was gathered that filling stations located along Airport Road, Central Area, and Nyanya increased their retail cost between N990 and N1, 030 per litre.
The amount represents an increase of N60 or 6.18 per cent from N970 it sold its products last week Friday.
Aym Shafa and Matrix filling stations along the Airport Road sold at N1, 000 per litre while Shema station sold at N1, 030.
As petrol consumers adjust to the new pump price, experts predict further changes in petrol pricing as Nigeria continues to align its energy policies with global market realities.
A source at the private depot informed that loading activity commenced fully on Monday with bulk marketers loading products from the Dangote refinery.
The source said, “Refined petroleum sales commenced fully today with no issues at all. Marketers have increased their prices between N965 and N975 per litre at depots but at filling stations, a litre increased above N1,000 in Lagos. In Akwa Ibom, prices increased to N1, 100.”
Reacting, an oil and gas expert, Olatide Jeremiah, said the refinery, Depot, and Pump price changes are a reflection of market forces and a testament to the petroleum sector being deregulated.
He said, “The Refinery, Depot, and Pump price changes are a reflection of market forces and a testament to the petroleum sector being deregulated. Deregulation is one major solution to fuel scarcity and hike in pump prices.
“This hike is temporary; it’s an effect of former President Biden’s ban on Russian oil companies. As of this morning, Brent crude oil prices fall to $80 per barrel as Trump assumes the Presidency.”
Meanwhile, Brent crude oil futures dropped to $79.98 per barrel on Monday, from $81 last Friday.
Brent crude for March delivery was down 1.5 per cent to trade at $79.66 per barrel at 11.20 am ET while WTI crude for February delivery declined 1.8 per cent to $76.46 per barrel.
But following the inauguration of Trump on Monday, the Brent crude rose again marginally to $80.05.
The US under Joe Biden, the immediate past president, had intensified sanctions on Russia, imposing heavy fines on its vessels.
Experts say it was influenced by US President Donald Trump’s inauguration in the hope of some clarity on his policy agenda.
