The Nigerian National Petroleum Company Limited (NNPCL) has increased the price of Premium Motor Spirit (PMS) from its previous range of ₦568-₦617 per litre to between ₦855-₦897 per litre. This new pricing came into effect on 3rd September 2024.

NNPCL’s fuel prices typically vary depending on the location, with Lagos generally offering the lowest prices. Internal communication from the oil company stated, “This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from ₦617/litre to ₦897/litre, effective today, 3rd September 2024. Please ensure all your pumps, totems (price boards), and MIDs reflect the new PMS price of ₦897/litre.”

However, there has been no official confirmation from the NNPCL regarding this development. Reports indicate that the NNPC filling station on Awolowo Road, Ikoyi, Lagos, is selling petrol at ₦855 per litre, while an NNPC station in Ibadan displayed a price of ₦865 per litre.

This significant price increase represents a major shift for consumers, who will now face substantially higher costs at the pump. The hike is expected to have far-reaching effects on the economy, driving up transportation costs as well as the prices of goods and services nationwide.

This development comes just days after the NNPCL disclosed it is facing severe financial difficulties due to mounting debts owed to petrol suppliers. In a press statement issued on Sunday by its Chief Corporate Communications Officer, Olufemi Soneye, NNPCL acknowledged widespread reports in national newspapers about its substantial debt obligations.

The company admitted that the financial strain is placing immense pressure on its operations, potentially threatening its ability to maintain a consistent fuel supply across the country. “The financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply,” the statement read.

As Nigeria’s principal fuel supplier, NNPCL plays a crucial role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). Despite the challenges, the company reaffirmed its commitment to fulfilling this duty, stating, “NNPCL remains dedicated to its role as the supplier of last resort, ensuring national energy security.”

Recently, NNPCL announced a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, marking a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported for 2022. The company also declared a substantial final dividend of ₦2.1 trillion.