By Chibuike Nwabuko
ABUJA FCT – Amidst wide condemnation trailing the unannounced increase in price of Premium Motor Spirit (aka fuel), the Nigerian National Petroleum Company Limited (NNPCL) has offered reason for the sharp rise in price across the country.
According to the NNPCL, foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
The Chief Corporate Communications Officer
NNPC Ltd., Olufemi Soneye who disclosed this in a statement released on official X account of the company, said 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.”
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.”
He assured 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.”
Precise Post recalls that the House of Representative, the Nigerian Labour Congress (NLC), PDP, LP, as well as other well meaning Nigerians and different bodies have condemned the hike in price, with many calling for immediate reversal.
