Fuel Prices in Abuja: A Shift in Market Dynamics
In a surprising turn of events, some filling stations in Abuja, Nigeria’s federal capital, are now selling petrol at prices lower than those of the Nigerian National Petroleum Company Limited (NNPC Ltd). This development comes as a result of the NNPC’s decision to terminate its exclusive purchase agreement with Dangote Refinery, allowing marketers to negotiate prices directly with the refinery.
According to a report by PREMIUM TIMES, petrol pump prices rose to N998 and N1,030 per litre at various outlets of the NNPC Ltd in Lagos and Abuja, respectively, on Wednesday. However, a visit to petrol stations in Abuja on Thursday morning revealed that some marketers are now selling petrol at prices lower than NNPC’s.
At NIPCO fueling station at Ahmadu Bello Way by Banex junction, petrol was sold for N1,025 per litre, while Mobil filling stations located at Ahmadu Bello Way, Mabushi, and Obafemi Awolowo Way, Utako, also sold at N1,025 per litre. NIPCO and Mobil fuel stations, both located along Airport road, also sold the product at N1,025 per litre.
However, prices differ at other stations. Total Energies, located at Sultan Abubakar Way, Zone 3, sold the product for N1,080, while Eterna filling station at Obafemi Awolowo Way, Utako, sold at N1,120. Shafa filling station, located along Airport road Lugbe, sold at N1,050.
The shift in fuel prices is attributed to the NNPC’s decision to terminate its exclusive purchase agreement with Dangote Refinery, which has led to a change in the fuel market dynamics. The NNPC had claimed in September that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre. However, the company said this arrangement is no longer sustainable.
The NNPC lifted about 103 million litres of petrol from Dangote Refinery between September 15 and 30. The refinery was able to load 2,207 of the 3,621 trucks sent to it within the period under review, resulting in a 26% performance rate.
The development has sparked a new era of competition in the fuel market, with marketers now free to negotiate prices directly with the refinery. According to Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the association’s members have yet to start loading petrol from Dangote Refinery, but are expected to do so soon.
As the fuel market continues to evolve, it remains to be seen how this shift will impact the prices of petrol and the overall economy. One thing is certain, however, that the change will bring about a new era of competition and innovation in the fuel industry.
