Give me the latest on this: NNPC Fuel Price Surge to N1,030.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,030 per litre at various outlets, particularly noted in Abuja as of recent updates. This price hike follows NNPC’s decision to terminate its exclusive purchase agreement with Dangote Refinery, allowing other marketers to directly purchase petrol from the refinery. This shift signifies a move towards a more deregulated market where prices are determined by direct negotiations between refineries and marketers, operating on a “willing buyer, willing seller” basis.

The price surge has been met with considerable public discontent, with social media platforms like X (formerly Twitter) reflecting widespread frustration among Nigerians over the cost of living implications. Posts on X from users and news outlets have confirmed the new pricing, with some reporting variations across different regions, suggesting prices might slightly differ due to logistics or other local factors.

This development comes amidst broader economic concerns, including NNPC’s acknowledgment of financial strains due to a $6 billion debt related to petrol supply, which has contributed to fuel scarcity and price fluctuations. The removal of subsidies, floating of the naira, and the dynamics of fuel importation have all played roles in the current pricing strategy, affecting the purchasing power of the average Nigerian.

The situation underscores ongoing challenges within Nigeria’s petroleum sector, including supply chain issues, the impact of currency devaluation, and the broader implications of subsidy removal on fuel pricing. This has led to calls for a comprehensive review of the fuel pricing mechanism, subsidy regime, or a total deregulation to stabilize the market and alleviate consumer burdens.