Nigerian state oil firm NNPC Ltd increased petrol prices by 11% on Monday, marking its second hike in two weeks. This change comes a day after NNPC began purchasing fuel from the new Dangote oil refinery near Lagos.
With a capacity of 650,000 barrels per day, the refinery is expected to end Nigeria’s dependence on gasoline imports and subsidies, a move started by President Bola Tinubu since he took office in May last year.
NNPC’s new prices range from 950 naira ($0.53) per litre in Lagos to up to 1,019 naira in northeastern states, while the company buys fuel from the refinery at 898 naira per litre.
This increase is significant in Nigeria, where many rely on gasoline to power generators due to limited access to the national electricity grid.
NNPC announced it began purchasing fuel from Dangote Refinery on Sunday using U.S. dollars, with a naira-based deal still pending.
This latest price hike is expected to exacerbate public frustration as Nigeria grapples with 33.4% inflation, which has increased transport costs and triggered a cost of living crisis, leading to violent protests earlier this month.
A Nigerian presidential committee announced on Friday that NNPC will start distributing gasoline from the $20 billion Dangote refinery to the local market, ending a distribution deadlock.
Beginning in October, NNPC will provide 385,000 barrels of crude oil per day to the Dangote refinery, with payments in naira. The refinery will then sell the gasoline in local currency.
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