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Breaking News: NNPCL Increases PMS Price to ₦998 Per Liters In Lagos

OilandGasAdmin 0 Comments October 9, 2024

Olaitan Olutimehin Johnson October 9, 2024

The Nigerian National Petroleum Corporation (NNPC) has made a significant announcement regarding the increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. Effective immediately, the price of PMS will rise to ₦998 per litre, marking one of the highest price hikes in Nigeria’s history. This latest development has sparked widespread concern, as the cost of fuel continues to surge following the removal of the oil subsidy by President Bola Ahmed Tinubu earlier this year.

A New Era of Fuel Pricing in Nigeria

The decision to increase PMS prices comes in the wake of ongoing economic challenges and global market dynamics. According to the NNPC, the rise in global crude oil prices, the devaluation of the naira, and the removal of fuel subsidies are the primary factors behind this drastic price surge. The change in price has sent shockwaves across various sectors of the economy, with Nigerians already expressing concerns about the impact this will have on the cost of living, transportation, and goods and services.

According to an insider of the NNPCL who chose not to be mentioned or quoted, said the reason behind the price increase may be linked to the rising crude oil prices in the international market, as revealed to our correspondent..

And also mentioned that the price adjustment is necessary to ensure adequate supply and to maintain profitability in the oil sector. However, the timing and scale of the increase have caught many Nigerians off guard, as the country continues to grapple with rising inflation and economic uncertainty.

The End of Oil Subsidies: A Turning Point

The current fuel price increase is part of a broader narrative that began with the removal of the oil subsidy in May 2023, just days after President Tinubu assumed office. The removal of the subsidy was one of Tinubu’s most controversial economic reforms, aimed at addressing Nigeria’s mounting fiscal challenges.

For decades, Nigeria had maintained an oil subsidy program that kept the price of petrol artificially low, allowing Nigerians to enjoy some of the lowest fuel prices globally. However, this subsidy came at a heavy cost to the government, which was spending billions of naira annually to keep fuel prices low. By removing the subsidy, Tinubu sought to redirect these funds toward infrastructure, healthcare, and education, while also reducing the fiscal deficit.

During his inauguration speech, Tinubu declared, “Subsidy is gone,” marking the beginning of a new chapter in Nigeria’s economic history. The removal of the subsidy was met with mixed reactions, with many acknowledging that while the subsidy was unsustainable, its removal would lead to higher fuel prices and increased hardship for ordinary Nigerians.

A History of Fuel Price Increases Since the Removal of Subsidy

Since the removal of the subsidy, Nigeria has witnessed a series of fuel price hikes, each with its own economic and social implications. The timeline of fuel price increases since Tinubu’s administration took this bold step paints a picture of the challenges faced by the government and the Nigerian people in navigating the post-subsidy landscape.

1. May 2023: Subsidy Removal and Initial Price Hike

On May 29, 2023, President Tinubu’s announcement of the removal of the oil subsidy immediately led to an increase in fuel prices. Within days, the price of PMS rose from ₦189 per litre to an average of ₦500 per litre. This initial hike was met with shock and protests across the country as Nigerians struggled to adjust to the new reality.

Despite government assurances that the removal of the subsidy would lead to long-term economic benefits, many Nigerians felt the pinch almost immediately, with transportation costs doubling and the prices of goods and services skyrocketing. Tinubu’s government promised palliative measures to ease the burden on the population, but the effectiveness of these measures has remained a point of contention.

2. June 2023: Further Adjustment to ₦617 Per Litre

Barely a month after the subsidy removal, the price of PMS rose again, this time to ₦617 per litre. The NNPC cited the fluctuating international crude oil prices and the depreciation of the naira as the reasons for the increase. At this point, the shock of the initial subsidy removal was still fresh, and many Nigerians were grappling with the rising cost of living.

The June 2023 price hike led to widespread criticism of the government’s decision to remove the subsidy without putting adequate measures in place to cushion the impact. Labor unions and civil society organizations organized protests and threatened strikes, demanding that the government reverse the decision or provide more substantial palliatives.

3. August 2023: A Gradual Climb to ₦720 Per Litre

In August 2023, the price of PMS rose yet again, this time to ₦720 per litre. The NNPC, in its defense, pointed to the global oil market and the ongoing depreciation of the naira against the dollar as contributing factors. The government reiterated its stance that the removal of the subsidy was necessary to stabilize Nigeria’s economy and reduce its reliance on debt.

The August increase was met with increasing public frustration, as transportation costs, food prices, and general living expenses continued to rise. Many Nigerians called for more government intervention, while labor unions renewed their calls for strikes and protests.

4. October 2023: Price Reaches ₦800 Per Litre

By October 2023, the price of PMS had climbed to ₦800 per litre, signaling the persistent pressure on Nigeria’s fuel pricing system. This price adjustment came amid rising global crude oil prices, which had surpassed $90 per barrel. The devaluation of the naira had also deepened, exacerbating the cost of importing refined fuel.

At this point, the impact on Nigerians’ daily lives was undeniable. The cost of transportation had soared, and many businesses, particularly in the informal sector, were struggling to survive. Despite the challenges, the government continued to defend its subsidy removal policy, arguing that it was necessary to attract investment into the downstream sector and encourage local refining.

5. December 2023: Price Reaches ₦880 Per Litre

As the year drew to a close, the price of PMS increased yet again, this time reaching ₦880 per litre in December 2023. The increase was driven by a combination of global oil market trends, currency depreciation, and the government’s decision to fully deregulate the oil sector. The NNPC stated that it was committed to maintaining fuel supply despite the challenges, but many Nigerians were beginning to lose hope that the situation would stabilize.

6. January 2024: New Year, New Price – ₦950 Per Litre

The beginning of 2024 brought little relief, as the price of PMS hit ₦950 per litre in January. This increase was one of the sharpest yet, and it further strained the finances of Nigerian households. The government announced plans for more social interventions, but skepticism remained high, especially as labor unions continued to demand that the government reverse the removal of the subsidy.

7. October 2024: The Latest Increase to ₦998 Per Litre

And now, in October 2024, the NNPC has announced the latest and most significant fuel price increase yet, pushing PMS to ₦998 per litre. This latest adjustment reflects ongoing global oil market trends, currency depreciation, and the full deregulation of Nigeria’s downstream oil sector.

The increase in fuel prices has led to widespread concern across Nigeria, as the effects of the rising costs are felt in nearly every aspect of daily life. Transportation costs, for example, have risen dramatically, making commuting difficult for many, particularly those who rely on public transport. Small businesses, which depend on petrol for generators due to unreliable electricity supply, have been hit hard, with many being forced to close or scale down operations.

The rise in fuel prices has also led to a surge in inflation, with food prices, household goods, and services becoming more expensive. This has exacerbated the challenges faced by Nigeria’s most vulnerable populations, who were already struggling with high unemployment rates, low wages, and economic insecurity.

Fuel/ News/ NNPC/ Oil and Gas

We Are Ready for Business: IPMAN President Speaks Out Strongly

OilandGasAdmin 0 Comments October 8, 2024

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured Nigerians that once the association starts lifting premium motor spirit (PMS) from the Dangote Refinery, the public will benefit from favorable prices, as crude oil is sold to the refinery in naira. Despite this, the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) remains committed to continuing fuel imports, citing concerns over refinery output and business sustainability.

Maigandi reassured that there is no cause for concern, addressing reports that the Nigerian National Petroleum Company (NNPC) Limited has ended its exclusive purchase agreement with the Dangote Refinery. This development opens the market for other marketers to directly source petrol from the refinery, which has a capacity of 650,000 barrels per day. Maigandi’s comments suggest a more competitive environment that could benefit consumers and petroleum marketers alike.

Although neither NNPCL nor Dangote Refinery has confirmed or denied the reports, the move suggests that NNPC will no longer serve as the sole buyer, allowing other marketers to directly negotiate prices with Dangote Refinery. Maigandi, speaking for IPMAN, welcomed this development, stating that if NNPCL can purchase directly, so should they. He noted that concerns over pricing should not be an issue, pointing out that they currently buy petrol from NNPC at over ₦800 per litre, but expressed optimism about how things will unfold.

Maigandi expressed confidence that selling crude oil to Dangote Refinery in naira would result in favorable pricing for Nigerians. He reassured that IPMAN is fully prepared to commence business and urged citizens not to worry about fuel prices. According to him, once they begin lifting petrol directly from the refinery under the naira sales regime, consumers will be pleased with the outcome, promising that this move will bring relief to the public.

He explained that independent marketers had not previously purchased Dangote petrol from NNPCL because they were waiting to see the pricing structure. He added that while they are open to any terms, their preference is to source directly from Dangote Refinery, which is the most suitable option for them. Meanwhile, Dr. Muda Yusuf of the CPPE emphasized the need for more transparency from NNPCL, pointing out that current pricing suggests a partial subsidy and urged clarity on whether the government plans to fully deregulate PMS prices.

He pointed out that, as a private company with loans to repay, Dangote Refinery must operate at market prices. This means that if all marketers begin purchasing directly from Dangote, it would signal the complete removal of any fuel subsidies. He also noted that the recent policy of selling crude oil in naira to the refinery might enable Dangote to sell at a similar price to what NNPCL previously offered, potentially compensating for the prior subsidy and benefiting all parties involved.

From a social standpoint, completely deregulating petrol prices at this time would be unwise given the current challenges Nigerians are facing, according to Yusuf. He urged the NNPC to address the situation publicly, as continued silence could lead to confusion and speculation. Yusuf recommended that the government maintain the current marginal subsidy on petrol to protect the most vulnerable members of society and prevent further economic strain.

Featured/ Fuel/ News/ NNPC/ Oil and Gas

NNPCL’s Dual Challenges: Between Postponed Promises and Private Partnerships

OilandGasAdmin 0 Comments October 7, 2024

Olaitan Olutimehin Johnson 7th October,2024

The Nigerian National Petroleum Company Limited (NNPCL) finds itself grappling with a complex situation: on one hand, there is the unfinished business of reviving government-owned refineries, most notably the Port Harcourt Refinery, which has seen countless delays; on the other, NNPCL is becoming increasingly involved as an intermediary between the newly operational Dangote Refinery and independent marketers. This dual focus reveals an underlying tension within Nigeria’s oil sector—a tension that has broad implications for energy security, pricing stability, and economic resilience.

The Long-Awaited Revival of Government-Owned Refineries

One of the most pressing challenges NNPCL faces is the continuous postponement of getting the government-owned refineries—specifically, the Port Harcourt Refinery—back to operational status. These refineries, once the pride of Nigeria’s domestic fuel production, have for years failed to produce any significant output due to mismanagement, lack of maintenance, and underinvestment. The Port Harcourt Refinery’s rehabilitation, originally projected to be completed years ago, has become a symbol of unfulfilled promises. Despite repeated reassurances, each announced operational date has ended in another delay.

These continuous postponements have frustrated both industry players and the general public. The expectation was that the refurbishment of the government-owned refineries would reduce Nigeria’s dependence on imported refined products and help stabilize the supply of Premium Motor Spirit (PMS). Yet, every new missed deadline only emphasizes NNPCL’s struggle to bring this vision to life. The prolonged delays mean that Nigeria continues to depend heavily on imported petrol, draining valuable foreign exchange reserves and subjecting the domestic market to international price volatility.

NNPCL’s inability to meet its refinery deadlines has broader implications for Nigeria’s energy landscape. The delays perpetuate an expensive reliance on imports, making Nigeria vulnerable to fluctuations in global oil markets and depriving the country of the opportunity to establish true energy independence. This situation directly impacts fuel prices across the nation, often resulting in high costs at the pump that ripple through other sectors of the economy, driving up the cost of goods and transportation.

Stepping in as the Intermediary Between Dangote and Independent Marketers

While the government refineries remain stuck in limbo, NNPCL has increasingly stepped in to play a different role—acting as an intermediary between Dangote Refinery, Africa’s largest private refinery, and the nation’s independent petroleum marketers. This new role comes with its own set of opportunities and challenges, signaling a pivot in NNPCL’s strategy amidst the delayed progress on their own refineries.

With Dangote Refinery now operational and producing petrol, NNPCL initially positioned itself as the sole buyer of PMS from the refinery, ostensibly to ensure a stable and streamlined supply chain. However, recent reports suggest that NNPCL is reconsidering this exclusive role. Instead of acting as the single point of purchase and distributor, NNPCL may opt to share responsibility with independent marketers, creating a more open, albeit complex, market dynamic.

This move raises several questions. Is NNPCL stepping away from its primary mandate to prioritize the rehabilitation and operation of the nation’s own refineries? By focusing on acting as a middleman between Dangote Refinery and independent marketers, NNPCL may be indirectly admitting its inability to swiftly restore the government-owned refineries. This evolving role, while seemingly practical in light of current fuel demands, also indicates a strategic shift from being a production-centric entity to more of a logistics and supply-chain facilitator.

For independent marketers, having direct access to Dangote’s output could mean more competition and, ideally, better pricing. However, without NNPCL’s coordinating hand, the market could become prone to price wars and supply inconsistencies, ultimately harming the average consumer. This uncertainty puts additional pressure on NNPCL to manage relationships and market expectations carefully, even as it attempts to figure out its own production capacities.

Broader Implications for Nigeria’s Energy Sector

NNPCL’s current situation presents a paradox: it’s an organization with significant potential and ambition but is caught between two competing roles. On one hand, it aims to fulfill the national goal of restoring government refineries to operational status—a crucial step towards reducing reliance on fuel imports and gaining true energy independence. On the other hand, the company is leaning into its role as an intermediary, seemingly to cover gaps created by the ongoing failure to rehabilitate its refineries.

This dual focus dilutes NNPCL’s capacity to make meaningful progress on either front. The delays in refinery operations mean that Nigeria continues to lose out on potential value-added benefits from refining its crude oil domestically. Meanwhile, by inserting itself as a middleman between Dangote and independent marketers, NNPCL risks entrenching itself in a complex intermediary role instead of developing its own production facilities.

Moreover, these moves have critical implications for fuel pricing and availability across Nigeria. The reliance on a single private entity—Dangote Refinery—for refined products creates a potential monopoly scenario, where market dynamics are subject to the pricing strategies and production decisions of one company. If NNPCL is unable to fully rehabilitate its refineries, this concentration of power in a single private refinery could lead to unstable pricing and limited control for the government over critical energy supplies.

Conclusion: A Need for Focused Strategy and Decisive Action

NNPCL’s current dual role is emblematic of the broader challenges facing Nigeria’s oil and energy sectors. The continuous postponement of government-owned refineries, particularly the Port Harcourt facility, highlights a persistent inability to achieve energy independence despite immense national resources. At the same time, the evolving intermediary role between Dangote Refinery and independent marketers points to a stopgap solution rather than a long-term strategic approach.

To address these dual challenges effectively, NNPCL must prioritize and clarify its focus. The government refineries must either be brought online without further delays or realistic alternatives must be developed, including potential partnerships or divestitures that could make these refineries functional. On the other hand, if NNPCL decides to continue acting as a mediator in the petrol supply chain, it must ensure transparency, fair pricing, and a stable supply to benefit both marketers and consumers.

Ultimately, NNPCL’s ability to move beyond its current position of “two mouths”—speaking both about refinery rehabilitation and private partnerships—will determine its role in shaping Nigeria’s energy future. By adopting a focused, strategic, and action-oriented approach, NNPCL can finally fulfill its mandate of securing energy stability for Nigeria, thereby laying the foundation for long-term economic growth and national development.

Breaking News/ Featured/ Fuel/ Local/ News/ NNPC

Why independent marketers can’t buy petrol from Dangote refinery – PENGASSAN

Tosinuel 0 Comments September 26, 2024

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has clarified the reasons independent marketers are unable to purchase petrol directly from Dangote Refinery.

The association’s president, Festas Osifo, at a press conference in Lagos, on Tuesday, said the issue stems from a pricing disparity between the costs at which the Nigerian National Petroleum Company Limited (NNPCL) buys PMS and the prices it sells to independent marketers.

Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.

He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1,000.

Independent marketers prefer to purchase from NNPCL to take advantage of the lower prices, he said.

Osifo noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.

He cautioned that the ongoing trend of divestment by International Oil Companies (IOCs) poses both risks and opportunities for Nigeria, including potential reductions in foreign direct investment and production levels.

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Breaking News/ Featured/ Fuel/ Local/ News/ NNPC

Fuel sells for N2,500 per litre in Akwa Ibom over NUPENG, JTF face off

Tosinuel 0 Comments September 26, 2024

UYO – PREMIUM Motor Spirit (PMS) on Tuesday shot to N2500 per litre in Akwa Ibom state with consumers hardly able to get it as Independent Petroleum Marketers Association of Nigeria (IPMAN) engages in panic sales over lingering faceoff between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Joint Task Force (JTF).

Most filling stations run by independent marketers monitored in Uyo and environ were shut in response to the “Notice of Withdrawal of Services Over Confiscation of PMS – Loaded Trucks by JTF Personnel”, signed by the Chairman, Coordinating Committee, Francis Udoyen, and Secretary, Prince Ekom Idemudo.

They said it was imperative to call out their members in solidarity with NUPENG to demand the release of the PMS-loaded trucks seized from some members four months ago by men of the JTF, Operation Delta Safe (ODS).

“As part of our obligation to stand for each other in and off-season, equally drawing strength from the resolution taken at the last emergency congress over members’ trucks in the custody of the JTF operatives for four months now, you are hereby directed to close your filling stations from the public with effect from Tuesday, September 24, 2024.

“This action has the approval of our national office, and non-compliance will be visited with appropriate consequences”, the IPMAN directive read.

State Chairman, Natural Oil and Gas Association of Nigeria (NOGASA), Sam Osung, former Aide to Governor Umo Eno, blamed the state government for failing to wield the big stick against perceived excesses of NUPENG and IPMAN.

Osung accused the stakeholder groups of overreaching themselves in the state, arguing that if they felt offended by the JTF’s impounding of their fuel trucks, the lawful thing to do was to go to court to prove their case and not hold fuel consumers to ransom.

He narrated that, “Men of the ODS under the 2 Brigade, Nigeria Army, arrested two trucks of PMS and 44 drums of PMS from six filling stations at Ibaka, Mbo Local Government Area over four months ago. The filling stations were accused of involvement in petroleum products smuggling.”

Breaking News/ Featured/ Fuel/ Local/ News/ NNPC

Nigerian Petroleum Company NNPCL Raises Fuel Price To N850 Per Litre

Tosinuel 0 Comments September 26, 2024

Filling stations owned by the Nigerian National Petroleum Company Limited (NNPC) have hiked the fuel price to over N850 per litre in the country.

SaharaReporters learnt that this move by the filling stations was in compliance with a directive given by the NNPC management compelling an immediate increment of fuel official price from N568 to N855.

Checks by SaharaReporters in Ilorin, Kwara State showed that the filling stations on Tuesday morning complied with the directive on the increment.

An NNPC station located at Adewole Area of Ilorin, the state capital is currently selling fuel at N877 per litre.

A picture of an NNPC station in Lagos which SaharaReporters saw indicated total compliance with the directive as the new price is pegged at N855 in the state.

A viral video on X showed how Nigerians are lamenting the new price.

“N855 at NNPC station in Ikoyi area (Lagos State),” a customer said in the video.

Video Link

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Breaking News/ Fuel/ Local/ News/ NNPC

Tinubu won’t intervene in Dangote, NNPCL tiff over petrol — Presidency

Tosinuel 0 Comments September 26, 2024

THE presidency has affirmed that President Bola Tinubu will not intervene in the ongoing fuel price controversy between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed this to journalists at the Presidential Villa, Abuja on Wednesday, emphasising that both entities operate independently in a deregulated market.

The presidential aide: “The PMS field, the PMS regime, has been deregulated. Dangote is a private company. NNPC should not forget is a limited liability company.

“NNPC is on its own, even though it’s owned by the Federal Government, the state government and local councils and everything, but it’s operating as a limited liability company.

According to Onanuga, instead of intervening, the government plans to promote alternative energy solutions like Compressed Natural Gas (CNG), offering a cheaper option for consumers and subsidising conversion costs for vehicles.

Furthermore, Onanuga pointed out that the administration is encouraging states to develop urban transportation systems to reduce overall transportation costs.

He stated: “In addition, the government is going to encourage many of our states to go into bank transportation so they can help to make sure that they reduce the cost of transportation in many of our cities. As of now in the entire country, only Lagos, state has an urban transport system.

“Any modern city should have an urban transport system, a bus system, or racist and so on and so forth.

So that’s the government, the plan of government to make sure that we shift our attention from just one consumer payments, there must be an alternative energy that we can also use which is cheaper, and CNG has proven to be that.

“And the government also has a plan to make sure that even private car owners can convert to CNG at a reduced cost.

“For transporters, is almost free for them, but for private vehicle owners, the government has a plan to subsidise, I mean, the cost of converting the from petrol to CNG.”

Meanwhile, Presidency has confirmed that President Tinubu will soon reshuffle his cabinet.

The cabinet was constituted in August of last year.

The President has expressed his desire to reshuffle his cabinet and he will do it. I don’t know whether he’s going to do it before October 1, but he will surely do it. So that’s what I will say. He has not given us any timeline he’ll do it, but he will to do it.

He has expressed his plan he wants to do it.”

Also speaking, the Senior Special Assistant to the President on Digital Media, O’tega Ogra, explained the president will be guided by an empirical process being coordinated by the Special Adviser to the President on Policy Coordination and head of the Central Delivery Coordination Unit, Hajia Hadiza Bala Usman.

He added: “We also need to realise that the President’s decision to reshuffle is also based on empirical evidence. He has said it during the retreat for the ministers that they were going to have periodic reviews, and the decisions that are extracted from these reviews will be used to make that final decision.

Meanwhile, Presidency said the Education Trust Fund (TETFUND) will allocate 30% of its resources to support the Nigerian Education Loan Fund (NELFUND) for student loans.

Onanuga, who spoke on the Economic Stabilisation Bill, added: “The amendment to the TET-FUND Act is crucial for enhancing student access to education.”

“The funds previously used for infrastructure will now support student loans, ensuring that all children can attend school, regardless of their parents’ financial status,” he noted.

Also speaking, Senior Special Assistant on Digital/New Media, O’tega Ogra, recalled that during the #EndBadGovernance protests, President Tinubu announced that financial recoveries from illegal activities will be allocated to support the Nigerian Education Loan Fund (NELFUND).

Не stated: “The President assured that funds from illegal activities would used to bolster NELFUND.

The Executive Secretary of TETFUND, Sonny Echono, highlighted that the 2023 Intervention Budget of N320 billion is fully allocated to beneficiary institutions.

“We are committed to ensuring that these funds are judiciously utilised to impact the common man,” Echono stated.

Onanuga also hinted that President Tinubu is to send an executive bill seeking to amend the National Identity Management Commission (NIMC) Act to the National Assembly.

When passed and signed into law, it will mandate everybody living in Nigeria, including foreigners to be registered and given the National Identity Number (NIN) so that they can be taxed.

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Featured/ Local/ News/ NNPC

Tinubu Govt Won’t Mediate In Dangote Refinery, NNPC Petrol Price Dispute –Presidency

Tosinuel 0 Comments September 26, 2024

The Nigerian Government has distanced itself from the ongoing face-off between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over petrol pricing, stating that it will not intervene in the dispute.

According to the Presidency, both NNPCL and Dangote Refinery are free to set their own pump prices for Premium Motor Spirit (PMS), otherwise known as petrol, as the petroleum market has been fully deregulated.

This is made known on Wednesday by President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, during a press briefing at the State House in Abuja.

Onanuga explained that the deregulated market allows oil refiners and marketers, including NNPCL and Dangote, to operate based on market dynamics without government interference.

He noted that the competition could eventually benefit Nigerian consumers by fostering competitive pricing, which might lead to a reduction in pump prices.

Onanuga said the government is committed to ensuring a free-market economy where consumers have choices. Both companies are now competing, and market forces will determine the price of petrol, he noted.

He said, “The PMS price regime has been deregulated. Dangote is a private company. NNPCL, you should not forget is a limited liability company.

“The dispute between the two is their own issue. According to the Petroleum Industry Act, NNPCL operates independently. Even though it’s owned by the Federal Government, the state government and local councils and everything, it is operating as a limited liability company.

“Private marketers have already expressed that NNPC and Dangote’s prices are too high for them, which may lead to them importing fuel.

“In the end, it’s the consumers who stand to benefit if a price war breaks out. If NNPC’s price is too high, the public market can bring in their own fuel and sell it at a more reasonable and profitable rate.”

“The government is not getting involved in this matter. Dangote operates his private company independently, and NNPC, as a limited liability company, has the authority to set its own prices,” Onanuga added.

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