Subsidy Removed As NNPC Increases Fuel Price To ₦555 Per Litre [Video]

NNPC has increased fuel price to ₦555 per litre in compliance with fuel subsidy removal.

Newsone reports that Nigeria has finally removed subsidy on premium motor spirit (PMS) popularly known as Petrol as the Nigeria National Petroleum Company (NNPC) Limited Wednesday morning officially changed its pump price to N537 per litre in Abuja, Nigeria’s capital.

This online news platform understands that the pump price is now ₦555 per litre at NNPC stations in Jos, Plateau State, northern Nigeria, according to a video posted on the micro-blogging site, Twitter on Wednesday morning, May 31, 2023.

Checks in Lagos showed similar trend in Lagos State where NNPCL now retail fuel at N488 per litre at its station on Old Ota Road, Abule-Egba, Lagos while the NNPC Mega Station, Lagos Bus Stop, at Port Harcourt on Wednesday sells for N511 per litre.

This change by the national oil company is providing clarity around prices after the removal of the controversial fuel subsidy which cost almost $10 billion annually. NNPC is the sole supplier of petrol in Nigeria today and it is now expected that other marketers will take a queue from the NNPC prices and adjust their own pump price this morning.

Analysts say since NNPC has effected different pump prices for different cities, this may mean that not only has subsidy gone but also that the wasteful price equalization mechanism which ensured petrol had the same official price all over Nigeria was also gone.

Newsone Nigeria recalls that  Nigeria’s new President, Bola Ahmed Tinubu on Monday, May 29, 2023, said the era of subsidy payment on fuel has ended.  President Tinubu said the 2023 Budget made no provision for fuel subsidy, and subsidy payment is no longer justifiable.

Meanwhile, it is unclear what FX exchange rate the Nigeria National Petroleum Company (NNPC) Limited has used to arrive at its pump price but it could be around N600/$.

President Bola Tinubu who resumed at Aso Rock on Tuesday afternoon held a long meeting with the CGEO of NNPC and CBN governor Godwin Emefiele on the vexed matters of fuel subsidy and the multiple foreign exchange rates.

This was after President Tinubu had announced in his inauguration speech that subsidy was gone and that the CBN had been mandated to abrogate the multiple exchange rates regime.

NNPC Increases Fuel Price To ₦555 Per Litre Video…

Dear @nnpclimited @NigeriaGov, I thought you said the subsidy is not out yet?
I just bought fuel #537 per litter from NNPC mega station Jos

What is going on now pic.twitter.com/mk8zgNZsZ1

— Mathias Pwol (@iamTrillaman) May 31, 2023