NNPC reduces petrol prices in Abuja amid subsidy warnings

The Nigerian National Petroleum Company Limited (NNPC) has implemented a price reduction for Premium Motor Spirit (petrol) at selected retail outlets in Abuja. In areas such as Gwarimpa and Wuse, the pump price dropped to ₦1,250 per litre, a decrease of ₦49 from the previous rate of ₦1,299 per litre.

Despite this localized reduction, NNPC Group Managing Director Mele Kyari has warned that the corporation can no longer sustain the massive monthly subsidy required to maintain current pump prices. Kyari stated that the company absorbs between ₦100 billion and ₦120 billion every month to cover the gap between the actual importation and handling cost of ₦234 per litre and the current selling price.

Kyari emphasized that market forces must eventually determine petrol prices, noting that consumers will likely have to pay the actual market cost in the future as the corporation can no longer bear the financial burden of the subsidy.