A report by Platforms Africa has suggested that the increment in pump prices of petrol by the Nigerian National Petroleum Company Limited, NNPC Ltd was a swift riposte to the decision by Dangote Refinery to sell the product to the national oil company at N977 per litre.
Dangote Refinery is a major supplier of the product to the NNPCL.
It will be recalled that the NNPCL earlier quit its middleman deal with Dangote Refinery, a move that made marketers, including NNPCL, to buy directly from Dangote at a cost-reflective price.
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With the new price by Dangote Refinery, the NNPC Ltd has adjusted the price of Premium Motor Spirit (PMS), also known as petrol, based on the ex-depot price it bought from the Dangote Refinery.
Reports trickling in indicate that the National Oil Company bought a litre of PMS from the Dangote Refinery at N977.
NNPC Retail Stations in Lagos are selling the product at N988, while those in Abuja are selling at N1,030.
Recall that since the recent exit of NNPC Ltd as the middleman in the Dangote Refinery PMS sale, the nation’s marketers are now free to buy their products from the refinery on a willing-buyer willing-seller basis.
THE CONCLAVE also reports that following Dangote Refinery price per litre adjustment to N977, NNPC Ltd, as a profit-making operator, was compelled to respond by raising its pump prices in accordance.
The development has triggered price competition in a fully deregulated downstream market where the interplay of the forces of demand and supply determines prices at every intersection.
Oil marketers are free to buy or source petrol from anywhere to meet the market demands.
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