The Nigerian National Petroleum Company Limited (NNPC) Wednesday increased the official pump price in its retail outlets to N1,030 per litre in Abuja from the N897 it announced on September 3.
With the latest price adjustment, it means that in the less than 17 months of the current administration, the price of the fuel has risen by over 430 per cent from May 29 when it took over the reins of power.
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Last month, the national oil company raised the pump price of petrol to N897 per litre from the official price of N617 it hitherto sold per litre in Abuja.
It came days after the NNPC said it was heavily constrained by the huge debt it owed international suppliers. The debt is estimated to be $6.8 billion.
Recall, recently the NNPC terminated its exclusive purchase agreement with Dangote Refinery which it earlier reluctantly accepted, thereby opening up the market for other marketers to buy petrol directly from the refinery.
On Tuesday, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, alluded to the fact that the sector is now fully deregulated, with market forces set to determine prices.
“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPC, to operate independently, following global best practices. While we provide strategic guidance. We do not interfere directly in the operations of these companies,” he said.