The Nigerian National Petroleum Company Limited has said that the recent fluctuations in Premium Motor Spirit prices are determined by free market forces.
The national oil company explained that these price variations are influenced by the free market forces, as outlined in the Petroleum Industry Act (PIA), 2021.
According to NNPC Ltd., the unrestricted market dynamics are a critical factor affecting PMS pricing amidst ongoing forex challenges.
Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
Segun said these fluctuations are governed by unrestricted free market forces, as specified in Section 205 of the Petroleum Industry Act (PIA), 2021, which established NNPC Ltd.
This section mandates that petroleum prices are determined by market dynamics without regulatory constraints.
“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,” he said.
Regarding the commencement of lifting Premium Motor Spirit (PMS) from the Dangote Refinery, NNPC Ltd, Segun stated that the company is awaiting the September 15th timeline set by the refinery for this process.
According to him, no right-thinking individual would be comfortable with the current fuel scarcity, noting 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.”
He said “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.”
Nigerians are faced with worsening fuel scarcity across major cities in recent weeks.
