The Nigerian National Petroleum Corporation Limited (NNPC Ltd.) has attributed the fluctuation in the prices of Premium Motor Spirit (PMS), popularly known as petrol to foreign exchange (forex) illiquidity.
NNPC Ltd. said that changes in costs are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
This was contained in a statement issued by the Chief Corporate Communications Officer of the company, Olufemi Soneye, on Thursday night.
According to the statement, the Executive Vice President (VP) of Downstream, NNPC. Ltd., Mr. Adedayo Segun, on TVC’s “Journalists’ Hangout” show, explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
Mr. Segun cited Section 205 of the PIA, which established NNPC Ltd., as stipulating that petroleum prices are 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 said.
On the commencement of lifting PMS from the Dangote Refinery, the VP said that NNPC Ltd. is awaiting the September 15th timeline provided by the Refinery.
He acknowledged that no one would be comfortable with the current fuel scarcity, adding that the company has nearly a thousand filling stations nationwide.
Segun also stated that NNPC Ltd. has been 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 added: “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.”
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