The Nigerian National Petroleum Company Limited (NNPCL) has raised the pump price of Petroleum Motor Spirit (PMS), commonly referred to as petrol, to N1,030 per litre.

This significant increase was noticed at NNPCL stations in Abuja on Wednesday, causing concern among consumers and stakeholders alike.

This price hike comes on the heels of a major shift in the NNPCL’s operational strategy.

The company recently announced the termination of its exclusive purchase agreement with Dangote Refinery, which has been a significant player in Nigeria’s oil sector.

Under the previous arrangement, NNPCL had been the sole off-taker for petrol produced by the Dangote Refinery.

With the end of this exclusive agreement, independent marketers now have the opportunity to negotiate prices directly with Dangote Refinery.

The termination of this agreement signifies a pivotal change in Nigeria’s petroleum market, opening the door for increased competition among marketers.

This could potentially lead to a more dynamic pricing structure, influenced by supply and demand factors rather than being dictated solely by NNPCL.

Market analysts believe that while this change may benefit consumers in the long run, the immediate effect will likely be a further increase in fuel prices, which have already been rising in recent months due to various economic pressures.

The move has raised concerns among the public, who are already grappling with the rising cost of living.

The transportation sector, which heavily relies on petrol, may face increased operational costs, leading to higher fares for commuters.

Moreover, this price adjustment may exacerbate inflationary pressures across various sectors of the economy, as the cost of goods and services tied to fuel prices continues to escalate.

As the situation develops, industry stakeholders and consumers will be closely monitoring the impact of these changes on the fuel market and the broader Nigerian economy.

The hope is that increased competition among marketers will eventually lead to more favorable prices for consumers, but for now, many are feeling the pinch of this latest increase.