The Nigerian National Petroleum Company Limited (NNPC) has raised the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at its outlets in Abuja, effective from Wednesday.

This latest increase follows the NNPC’s decision to end its exclusive purchase agreement with Dangote Refinery. On Monday, the company announced the termination of the arrangement, opening the door for other fuel marketers to purchase petrol directly from the refinery.

With this change, the NNPC is no longer the sole off-taker of petrol from the Dangote Refinery, allowing marketers to negotiate prices independently. This development aligns with the existing deregulated framework for petroleum products, enabling refineries to sell on a “willing buyer, willing seller” basis.

Only last month, NNPC increased fuel prices to N855 per litre in Lagos and N897 per litre in Abuja. At the time, the company revealed that it was purchasing petrol from the Dangote Refinery at N898.78 per litre but selling it to marketers at N765.99 per litre, effectively covering a subsidy of nearly N133 per litre.

However, the NNPC has since stated that it can no longer sustain this subsidy arrangement.