The Nigerian National Petroleum Company Limited (NNPCL) says foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), fondly called petrol.
The NNPCL said these are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
The Executive Vice President of Downstream, NNPCL, Adedapo Segun, made this known while speaking on TVC News’ ‘Journalists’ Hangout’ show on Thursday, September 5, 2024.
Segun said the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS”.
He stated that Section 205 of the PIA, which established NNPCL, stipulated that petroleum prices were determined by unrestricted free market forces.
Dangote refinery: NNPCL didn’t lift our petrol at N897/litre
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Limited. Additionally, the exchange rate plays a significant role in influencing these prices,” he noted.
On the commencement of lifting petrol from the Dangote refinery, Segun said the NNPCL was awaiting the September 15th timeline provided by the refinery.
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPCL has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians”.
“We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations,” a statement issued on Thursday by NNPCL spokesman Olufemi Soneye quoted Segun as saying.
The NNPCL recently increased the pump price of petrol from N617 per litre to N897 litre at its outlets.
The independent marketers also adjusted their petrol pump prices to between N930 and N1,200 per litre.
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