Petrol pump price has risen to N1,030 per litre at various outlets of the Nigerian National Petroleum Company Limited (NNPCL) in Abuja on Wednesday.

The recent development comes after the NNPC decided to terminate its exclusive purchase agreement with Dangote Refinery.

The company had on Monday announced an end to its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.

This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.

Investors King had reported on Tuesday that oil marketers accused Dangote Refinery of ignoring its call for lifting of petrol.

However, checks on Wednesday at NNPC Ltd outlets in the Central area of Abuja, the Federal Capital Territory, showed that the price of the Premium Motor Spirit had been adjusted upward with the pump price of petroleum hitting N1,030.

Customers at the station also confirmed that the price of fuel was changed from N897 to N1,030.

At several other outlets in the Wuse, Lugbe area of the capital city, the pump price equally jumped to N1,030 as motorists and commuters grumbled amid the uncertainty.

Oil marketers in Nigeria have alleged that the Dangote 650,000 barrels per day Lagos-based refinery has been snubbing them on their demand to directly lift its Premium Motor Spirit, popularly known as petrol.

They hinted that the development is a setback on their efforts at making fuel sell cheaper across filling stations in the country.

The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi and the President of the Petroleum Products Retail Outlets Owners Association, PETROAN, Billy Gillis-Harry assured that if they are allowed to directly lift petrol from Dangote Refinery, it would make the product sell lesser.

Recall that the Nigerian National Petroleum Company Limited announced that it is quitting its role as sole off-taker of Dangote Petrol, thus forcing oil marketers and Nigerians to be in a waiting state.

Speaking on the development, Maigandi said all efforts put forward by IPMAN to meet with Dangote Refinery’s management have not yielded results and that messages sent to the refinery for direct lifting of its petrol were not replied to.

As of Monday this week, the oil marketers said they have not been able to have any of their proposed meetings with Dangote Refinery and neither has any feedback been given by Dangote Refinery on direct sales of its fuel.

They said it was difficult for them to make comments on the price of Dangote Petrol since they have not been able to buy it directly.

Notwithstanding, they assured that there would be a reduction in the price of petrol which currently goes between N950 and N1,200 per liter if Dangote Refinery agrees to sell the product directly to them.

Maigandi, while describing the expected reduction in the price of PMS as “small”, noted that NNPCL sold petrol to oil marketers at N840 and N870 per liter depending on the location, adding that “we sell at N950 in Abuja depending on the location.”

Speaking on NNPCL quitting role as sole off-taker of Dangote Petrol, Maigandi stressed that oil marketers are waiting to hear from Dangote Refinery on whether petrol could be lifted directly.

Gillis-Harry’s position was not different as he corroborated his counterpart’s submission that Dangote Refinery refused to sell its petrol directly to marketers.

According to him, despite attempts by petroleum marketers to have business discussions with Dangote Refinery, they have not received the green light.

He said the association had attempted to have a business discussion with Dangote Refinery on direct petrol lifting but as of the time of filing this report, the refinery has not given them greenlight.

Meanwhile, the spokesperson of Dangote Group, Anthony Chiejina said he was not aware of the allegations.

On September 15, the Dangote Refinery announced the inaugural distribution of its petrol with NNPCL as the sole buyer.

Upon the lifting of Dangote Petrol last month, had announced a fresh fuel price hike between N950 and N1,100 per litre across its retail outlets.

The fuel price adjustments came on the back of NNPCL’s stance that it bought Dangote petrol at N898 per liter, however, Dangote disagreed.

The oil firm, owned by Africa’s richest man, Aliko Dangote had hinted that its petrol pump price would be announced by the Presidential Implementation Committee on Naira-for-crude sales.

However, despite the kick-off of the Naira-for-crude with the expected supply of 24 million barrels by October and November 2024 by the Nigerian government, the price per liter of Dangote Petrol has remained a subject of controversy.

Last month, the House of Representatives urged Dangote Refinery to allow oil marketers to lift its petrol directly.

Earlier, refiners and marketers had hinted that the commencement of the Naira-for-crude sales deal with Dangote Refinery and other refineries would lead to a drop in the pump price of petrol.

The Federal Government has approved the decision of airline operators in Nigeria to purchase Jet A1 fuels from Dangote Refinery only.

In an interview monitored by Investors King, the Minister of Aviation and Aerospace Development, Festus Keyamo, revealed that the approval was granted following a recent meeting with the airline operators.

According to him, the decision to purchase fuel exclusively from the Dangote Refinery was taken by the operators.

The Minister lauded the naira-for-crude agreement with Dangote Refinery, adding that it will ease the pressure on foreign exchange.

He noted that the price of the product would no longer be influenced by the international market as local currency would dominate the market.

Furthermore, he assured the airline operators that they were going to have access to cheaper Jet A1 fuel from the Refinery.

Keyamo said, “The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.

“You can see that yesterday we started naira-for-crude purchase with Dangote. It’s all Naira, no Dollar component.”

“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market. It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo added.

The Minister of Finance, Wale Edun, on October 5, announced the Naira-for-crude sale deal with Dangote Refinery effective October 1, 2024.