NNPC Clarifies PMS Price Fluctuations Amid Forex Challenges
Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that the recent fluctuations in the price of Premium Motor Spirit (PMS), commonly known as petrol, are primarily due to foreign exchange (forex) illiquidity, as well as the influence of free market forces, in line with provisions of the Petroleum Industry Act (PIA) 2021.
Speaking on the TVC News program “Journalists’ Hangout” on Thursday, NNPC Ltd.’s Executive Vice President of Downstream, Mr. Adedapo Segun, explained that fuel prices are no longer controlled by the government or NNPC Ltd. Section 205 of the PIA, which established NNPC Ltd., stipulates that petroleum prices are determined by the free market.
Segun stated, “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 acknowledged the impact of foreign exchange scarcity on fuel prices, but reassured Nigerians that the current fuel scarcity is expected to subside within a few days as filling stations recalibrate and resume normal operations.
Segun also addressed the ongoing scarcity issue, noting that NNPC Ltd. is working closely with fuel marketers to ensure that filling stations maintain adequate operating hours to meet the country’s demand for petrol. “We have nearly a thousand filling stations nationwide and are collaborating with marketers to ensure that stations open early and close late, in order to maintain adequate fuel supply to meet the needs of Nigerians,” he said.
The Executive Vice President added that NNPC Ltd. is engaging with relevant authorities to prevent product diversions and ensure timely deliveries to stations across the country. He expressed optimism that the scarcity would ease soon, allowing Nigerians better access to fuel.
Segun also provided an update on the expected commencement of PMS lifting from the Dangote Refinery, stating that NNPC Ltd. is awaiting the September 15th timeline given by the refinery for operations to begin.
NNPC Ltd. assured Nigerians that efforts are underway to stabilize the fuel supply, ease scarcity, and ensure fuel is available across the country.
