The Nigerian National Petroleum Company Limited (NNPCL) has increased the price of premium motor spirit, also known as petrol, at its retail outlets. The new price is N905 per liter, up from N890, representing a N15 or 1.7 percent increase.

This development was observed at NNPCL retail outlets in Wuse Zone 6 and Zone 4, according to reports. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed the price hike to supply disruptions caused by the recent feud between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery. PENGASSAN had embarked on a two-day strike action over the mass sacking of Nigerian workers by the Dangote Refinery, which was later suspended following intervention by the federal government.

Despite the increase in price by NNPCL, IPMAN President Abubakar Maigandi stated that members of the association still dispense petrol between N885 and N895 per liter. This is in line with the association’s commitment to providing affordable fuel to consumers. The price increase by NNPCL is seen as a reflection of the current challenges facing the oil and gas industry in Nigeria, including supply chain disruptions and labor disputes.

The strike action by PENGASSAN had raised concerns over the potential impact on the country’s oil production and distribution. However, the swift intervention by the federal government helped to avert a prolonged disruption in fuel supply, which could have had far-reaching consequences for the economy. As the situation continues to unfold, industry stakeholders will be closely watching the developments and their potential impact on the sector.

The increase in fuel price by NNPCL is a significant development in the Nigerian oil and gas industry, coming at a time when the country is grappling with issues of fuel scarcity and supply chain disruptions. While the situation is being closely monitored, it remains to be seen how the price increase will affect consumers and the overall economy.