At several gas stations run by the Nigerian National Petroleum Company Limited in Abuja, the price of Premium Motor Spirit, also known as gasoline, was increased from N537 to N617 per liter on Tuesday.

Independent oil marketers attested to the rise in the cost of the good since they claimed that any change in price by NNPCL stations was a sign that the pump price of PMS had increased.

“This is because NNPCL is still the major importer of petrol into Nigeria currently, though other marketers are gradually importing the commodity. The price this (Tuesday) morning at some NNPCL stations is N617/litre,” the Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, told our correspondent.

Remember that President Bola Tinubu announced the end of the gasoline subsidy in his inaugural speech on May 29. This change caused the price of the commodity to increase from N198 per liter to above N500 per liter on May 30, 2023.

Since the withdrawal of subsidy on petrol and the floating of the naira against the dollar, marketers had continued to explain that the cost of PMS could rise to as high as N700/litre.

As crude oil is the raw material used to make PMS and other refined petroleum products, the increase in the price of crude oil on the global market has also led to an increase in the price of gasoline.

Drivers surrounded the filling stations in Abuja that were still selling fuel at N540 per litre on Tuesday morning, but when word of the NNPCL stations’ price increase spread, several independent retailers were forced to lock their locations.

Others started adjusting their pumps right away to reflect the new pricing. The downstream oil sector regulator and the NNPCL had not yet released any statements regarding the development.

Details to come…