- NNPC has rolled out different petrol prices for three major cities across Nigeria
- The new move by the NNPC means that petrol subsidy is now a thing of the past
- NNPC is the sole importer and supplier of petrol in Nigeria and says subsidy gulps about $10 billion annually
The Nigeria National Petroleum Company (NPPC) Limited adjusted its petrol prices across three major Nigerian cities on Wednesday, May 31, 2023, to reflect the new reality of petrol subsidy removal.
The adjustment provides clarity after removing the controversial subsidy regime that gulps almost $10 billion annually.
NNPC rolls out different prices in three cities across Nigeria
According to reporting by BusinessDay, the new development is noticeable in Lagos, where the NNPC’s retail outlets sell a litre of petrol for N488. In contrast, it sells a litre of petrol for N511 in Port Harcourt, the Rivers State capital.
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The company is the sole supplier of petrol in Nigeria, and it is now expected that other marketers will follow suit to adjust their prices similarly.
Energy policy analysts say NNPC has rolled out different pump prices for other cities, meaning that not only has subsidy gone but also that uniform petrol prices have also disappeared alongside subsidy.
Tinubu meets Emefiele and Kyari on subsidy and exchange rate
It is yet to be determined what foreign exchange rate the NNPC used to arrive at the new pump price, but it is believed to be around N600 per dollar.
President Bola Tinubu met with the CEO of NNPC, Mele Kyari, and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on the issues of fuel subsidy and multiple exchange rates.
The meeting followed Tinubu's announcement that the subsidy is gone and that funds from the subsidy would be channeled to infrastructure and other critical areas of the economy.
The Resident announced during his inauguration speech on Monday, May 29, 2023.
"N600/Litre": NNPC welcomes FG’s decision to remove fuel subsidy, says there is enough supply in stock
Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) had welcomed President Bola Tinubu’s decision to remove the petrol subsidy.
The NNPC Group Chief Executive Officer, Mele Kyari, stated during a press briefing in Abuja on Monday, May 29, 2023, that the company is pleased with the decision of the President to end the petrol subsidy in Nigeria.
According to Kyari, petrol subsidy removal will free up funds to make it commercially viable for Nigeria’s economy.