Relief As NNPC Reverses Petrol Price Hike, New Rates Emerge in Abuja, Lagos
- NNPC reduced its petrol pump price in Abuja by N35 per litre days after raising it over the weekend
- The Lagos Chamber of Commerce and Industry called on the Federal Government to introduce a six-month petrol price reduction programme
- LCCI Director-General Dr Chinyere Almona said stabilising prices at high levels would not ease pressure on businesses and households
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian National Petroleum Company Limited (NNPCL) has cut petrol prices at its Abuja filling stations to N1,370 per litre, reversing a weekend increase that had pushed the price to N1,405 per litre.
A market survey conducted on Monday, October 12, showed that NNPCL outlets in Berger, Wuse Zone 6 and Wuse Zone 4 had adjusted prices downwards by N35 per litre.
In Lagos, the state-owned company's stations were selling petrol at N1,360 per litre, N10 below the Abuja price.
Source: Getty Images
The price reduction comes amid the federal government's N66-per-litre discount, available to motorists through NNPCL's recently launched mobile application.
It also follows recent price increases by MRS and other filling stations, which have added to transportation and business costs nationwide.
FG faces pressure over petrol prices
Finance Minister Taiwo Oyedele last Thursday proposed fixing petrol prices at N1,350 per litre across NNPCL filling stations.
The proposal triggered questions about whether the government was restoring fuel subsidies. However, Oyedele and the Presidency rejected that interpretation, insisting the arrangement was a discount rather than a return to the former subsidy system.
Amid the debate, the Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to introduce a six-month programme targeting at least a 20% reduction in petrol pump prices.
The chamber's Director-General, Dr Chinyere Almona, said moderating sudden price increases would provide limited relief if pump prices remained high.
She argued that rising energy and transportation costs continued to erode consumer purchasing power, increase production expenses and weaken the competitiveness of Nigerian businesses.
LCCI proposes petrol price reduction programme
Almona called on the government to bring together domestic refiners, petroleum marketers, regulators and industry stakeholders to establish a structured Petrol Price Reduction Programme.
The initiative, she said, should aim to reduce petrol pump prices by approximately 20% from the prevailing national weighted-average price, subject to verified supply costs and sustainable market conditions, Leadership reports.
Her other recommendations included securing more predictable domestic crude oil supplies for refineries under transparent commercial arrangements, reducing logistics and distribution costs, improving storage infrastructure and eliminating unlawful charges that push pump prices higher.
Source: Facebook
The chamber also supported greater investment in compressed natural gas (CNG) and electric vehicle infrastructure to reduce dependence on petrol, Punch reports.
Almona warned that requiring refiners and importers to absorb temporary cost increases without proper management could create deferred financial obligations that might eventually push prices higher.
She said any intervention must preserve the commercial viability of refiners and importers, prevent fuel shortages and avoid undermining investor confidence in the sector.
Filling stations announce new petrol pump prices
Earlier, Legit.ng reported that Petroleum marketers have pushed petrol pump prices higher by as much as N39 per litre, ending a brief period of declining fuel costs and piling fresh pressure on consumers already stretched by the high cost of living.
Checks across the Federal Capital Territory showed that MRS filling stations, which are backed by Dangote Petroleum Refinery, moved their pump price from N1,370 to N1,409 per litre.
The new rate was applied at MRS outlets in Kubwa, Katampe, Gwarinpa and several other parts of the capital.
Source: Legit.ng
