Petrol Price Hikes to N1,200 Per Liter as Deregulation Takes Effect

Independent Oil Marketers Adjust Petrol Prices in FCT Amid Deregulation

Independent oil marketers in the Federal Capital Territory (FCT) have adjusted the pump price of petrol, following the recent full deregulation of the downstream sector of Nigeria’s petroleum industry. As of Wednesday, many filling stations in the FCT raised the price of petrol to an average of N1,200 per liter, reflecting the cost at which they purchased the product from the Dangote Refinery and Petrochemical Company.

This price adjustment comes after the Nigerian National Petroleum Company (NNPC) ended its exclusive purchase agreement with the Dangote Refinery, a move that allows other marketers to buy petrol directly from the refinery. With the deregulation now in full effect, oil marketers are no longer restricted to purchasing fuel from the NNPC. They can now negotiate prices with the refinery, opening up the market and creating more flexibility in the supply chain.

The full deregulation of the downstream sector has brought the sale of petrol in line with market-driven pricing mechanisms, meaning prices may fluctuate based on factors like global crude oil prices, refinery costs, and market demand.

This development marks a significant shift in Nigeria’s petroleum market, signaling greater competition among marketers and, potentially, varied pricing at the pump for consumers.