The Nigerian National Petroleum Company Limited (NNPC) has raised the price of Premium Motor Spirit (PMS) from its previous range of N568-N617 per liter to between N855-N897 per liter, effective September 3, 2024.
The price increase, which varies by location, sees Lagos with the lowest price at N855 per liter, while an NNPC station in Ibadan is selling at N865 per liter. Internal communication from the company stated, “This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/liter to N897/liter effective today, 3rd September, 2024. Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter.” However, there has been no official confirmation from NNPC regarding the price adjustment.
This significant hike in fuel prices is expected to have widespread economic implications, affecting transportation costs and the prices of goods and services across the country.
The increase comes just days after NNPC disclosed that it is facing severe financial challenges, including mounting debt to petrol suppliers. In a statement released on Sunday by the Chief Corporate Communications Officer, Olufemi Soneye, NNPC acknowledged the financial strain, which it said is threatening the sustainability of fuel supply across the nation. “The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.
As Nigeria’s principal fuel supplier, NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility reinforced by the Petroleum Industry Act (PIA). Despite current challenges, the company reaffirmed its commitment to national energy security, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”
Ironically, this announcement follows NNPC’s recent report of a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, a 28% increase from the ₦2.548 trillion profit reported for 2022. The company also declared a final dividend of ₦2.1 trillion, a stark contrast to its current financial difficulties.
