NNPC explains the real reason for the fuel price hike, attributing it to global market conditions and supply chain issues.
The recent increase in Premium Motor Spirit (PMS) prices has been attributed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) to the scarcity of foreign exchange, which they have identified as a significant factor.
According to the Petroleum Industry Act (PIA) of 2021, fuel prices are now subject to open market dynamics.
Mr. Adedapo Segun, the executive vice president for downstream operations at NNPC Ltd., discussed the current fuel scarcity during his appearance on TVC News’ “Journalists Hangout.”
Nigerians were provided with reassurance that fuel stations would finalize recalibration processes and return to regular sales of PMS, resulting in enhanced conditions within a few days.
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Segun highlighted that the market has been fully deregulated by section 205 of PIA; this implies that fuel prices are no longer under government or NNPC Ltd. control but subject to the influence of market forces. He mentioned that with regard to petrol pricing, the exchange rate is now a significant determinant due to deregulation.
Segun stated that the NNPC Ltd. is expecting the Dangote Refinery to commence operation by September 15th, while discussing fuel supply.
Segun acknowledged the frustrating scarcity of fuel and reassured that NNPC Ltd. is collaborating with marketers and close to 1,000 filling stations nationwide to provide sufficient fuel supply while extending opening hours.
Segun has assured Nigerians that they are working closely with the appropriate authorities to prevent product diversion and ensure prompt delivery to all stations, in order to alleviate scarcity which is expected to improve soon.
