NNPCL blames forex crisis for fuel price surge
Fuel queues
NNPCL blames forex crisis for fuel price surge
Abdullateef Fowewe
The Nigerian National Petroleum Company Limited has attributed the recent surge in petrol prices to foreign exchange illiquidity and unrestricted market forces, stating that petrol is expected to be subsidised in a few days as more stations recalibrate fuel prices.
During an interview on TVC News, Executive Vice President of Downstream Operations, Adedapo Segun, explained that the deregulation of the petroleum sector under the Petroleum Industry Act (PIA) of 2021 allows prices to be influenced by market dynamics rather than government control.
The pump price of Premium Motor Spirit recently increased from approximately N600 to between N855 and N897 per litre, sparking public outcry and protests from the Nigeria Labour Congress and the Trade Union Congress, who are demanding a reversal of the price hike.
Segun, while quoting him in a release by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye assured that the current fuel scarcity is expected to ease within days as more filling stations recalibrate their pumps and resume sales.
He said, “The current fuel scarcity was expected to subside in a few days as more stations recalibrate and begin selling PMS.
“Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.
“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 also provided an update on the Dangote Refinery, stating that NNPC anticipates beginning petrol lifting from the facility by September 15, which is expected to enhance the nation’s fuel supply and reduce reliance on imports.
“On the commencement of lifting PMS from the Dangote Refinery, Segun said that 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, to maintain adequate fuel supply to meet the needs of Nigerians,’” the release reads.
Segun while assuring Nigerians said, “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.”
