The Nigerian National Petroleum Company Limited (NNPC Ltd) has explained that unrestricted free market forces, as stipulated in the Petroleum Industry Act (PIA), have significantly influenced the fluctuation in Premium Motor Spirit (PMS) prices due to foreign exchange (forex) illiquidity.
The Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun, stated on TVC News’ “Journalists’ Hangout” show on Thursday that he expects the current fuel scarcity to “subside in a few days as more stations recalibrate and begin selling PMS.”
According to a statement by Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., Segun said Section 205 of the PIA, which established NNPC Ltd., stipulates that unrestricted free market forces determine petroleum prices.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
On the commencement of lifting of PMS from the Dangote Refinery, Segun said the NNPC Ltd. was awaiting the September 15 timeline provided by the refinery.
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. had nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early and close late to ensure adequate fuel supply to meet the needs of Nigerians.
He assured 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.”
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