The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) or petrol, which are governed by unrestricted free market forces as provided for in the Petroleum Industry Act (PIA), 2021.
The state-owned firm also revealed that lifting of crude oil from the Dangote Petroleum Refinery will begin September 15, 2024.
A statement signed by Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, said its Executive Vice President, Downstream, Mr Adedapo Segun, made these disclosure on Thursday, on TVC News’ “Journalists’ Hangout” show.
Segun, however, assured that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.
According to him, “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 PMS from the Dangote Refinery, Segun said that the NNPC Ltd. 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 NNPC Ltd. 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 products 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”, he assured Nigerians
Felix Ifijeh
