The Nigerian National Petroleum Company (NNPC) is facing significant financial strain due to the rising landing cost of petrol, now at N1,203 per litre, up from N720 in October 2023. As a result, petrol prices in Nigeria may soon increase to between N1,300 and N1,350 per litre. Despite being the sole importer of petrol, NNPC has not been transparent about the exact landing costs and continues to deny subsidizing fuel.

Amidst these challenges, the Dangote refinery has announced the commencement of petrol production, with the NNPC set to become the refinery’s exclusive buyer. This development could ease some of NNPC’s financial burdens by reducing importation and logistics costs, potentially alleviating the ongoing fuel scarcity. However, concerns remain about how NNPC will manage these new purchasing arrangements, especially given the current financial pressures. The situation has led to increased petrol prices and long queues at the few operating fuel stations in major cities like Lagos and Abuja.