The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that the prices of Premium Motor Spirit (PMS) are determined by free market forces, as outlined in the Petroleum Industry Act (PIA) of 2021, with forex illiquidity significantly influencing the price fluctuations.
Speaking on TVC News’ “Journalists’ Hangout” on Thursday, Mr. Adedapo Segun, Executive Vice President of Downstream, NNPC Ltd., addressed the ongoing fuel scarcity, stating that the situation is expected to ease within a few days as more fuel stations recalibrate and resume PMS sales.
Segun highlighted that Section 205 of the PIA, which established NNPC Ltd., mandates that petroleum prices are governed by unrestricted market forces. “The market has been deregulated, meaning that petrol prices are now determined by market dynamics rather than by government intervention or NNPC Ltd.,” he explained, adding that the exchange rate is a key factor in price determination.
Regarding the anticipated commencement of PMS lifting from the Dangote Refinery, Segun noted that NNPC Ltd. is adhering to the timeline set by the refinery, with operations expected to begin around September 15th.
He acknowledged the challenges posed by the current fuel scarcity, stressing that NNPC Ltd., which operates nearly a thousand filling stations nationwide, is working closely with marketers to ensure that stations operate longer hours to meet demand. “We are also engaging relevant authorities to prevent product diversions and ensure timely deliveries to all stations,” Segun assured, expressing confidence that the scarcity will subside shortly.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd., confirmed the company’s commitment to addressing the supply issues and maintaining adequate fuel availability for Nigerians.
