Nigeria’s state oil firm NNPC Ltd has raised petrol prices by 11%, the second such increase in two weeks, a day after it began purchasing fuel from the $20 billion Dangote refinery in Lagos. The new price ranges from $0.59 per liter in Lagos, up from $0.53, to $0.63 in northeastern states. NNPC stated that it buys the fuel for $0.56 from the refinery. Fuel prices are a sensitive issue in Nigeria, where citizens rely on petrol-powered generators due to inconsistent electricity supply. The price increase is likely to generate anger among Nigerians, who already struggle with high inflation, especially since it will also lead to increased transport costs. Nevertheless, the Dangote refinery, capable of producing 650,000 barrels per day, is regarded as a step in the right direction. It is expected to end Nigeria’s reliance on imported fuel, previously subsidized until President Bola Tinubu began phasing out support in May 2023.
SOURCE: REUTERS
