The Nigerian National Petroleum Company Limited (NNPCL) has distanced both itself and the Federal Government from responsibility for the current hike in petrol prices and the ongoing fuel scarcity. The company cited foreign exchange (forex) shortages and the operation of free market forces as major factors behind the fluctuations in the price of Premium Motor Spirit (PMS), commonly known as petrol.
Speaking on TVC News’ *Journalists’ Hangout*, NNPC Ltd.’s Executive Vice President of Downstream, Mr. Adedapo Segun, explained that under the Petroleum Industry Act (PIA) of 2021, petrol prices are determined solely by market dynamics. This deregulation means that the NNPCL and the government no longer control fuel prices, with exchange rate variations significantly influencing the cost of petrol.
“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,” Segun said.
He also addressed the fuel scarcity issue, expressing optimism that the situation would improve in the coming days as more filling stations recalibrate their pumps and resume selling petrol. NNPC Ltd., which operates nearly 1,000 stations nationwide, is collaborating with marketers to ensure stations open early and close late to meet public demand.
On the highly anticipated lifting of PMS from the Dangote Refinery, Segun noted that the company is awaiting the refinery’s September 15 timeline for operations to commence.
He reassured the public that NNPCL is taking steps to resolve the fuel scarcity, engaging relevant authorities to prevent product diversions and ensure timely deliveries to stations across the country.
Segun concluded by acknowledging that the fuel shortages are inconvenient but emphasized that efforts are in place to restore adequate supply as soon as possible.
The current situation follows rising forex challenges, which have further strained the economy, with consumers bearing the brunt of fluctuating fuel prices.
