The Nigerian National Petroleum Company Limited (NNPC Ltd.) has cited foreign exchange (forex) illiquidity as a significant factor driving the fluctuations in Premium Motor Spirit (PMS) prices. According to the Executive Vice President of Downstream, Mr. Adedapo Segun, the prices of petrol are now determined by market forces, in line with the Petroleum Industry Act (PIA) of 2021.
Speaking on TVC News’ Journalists’ Hangout, Segun explained, “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.”
Segun addressed the ongoing fuel scarcity, assuring Nigerians that the situation should improve soon. “The scarcity should ease in the next few days as more stations recalibrate and begin operations,” he said, adding that NNPC Ltd. was working closely with filling stations and marketers to ensure adequate supply across the country.
He further revealed that NNPC Ltd. was awaiting the September 15th timeline for lifting PMS from the Dangote Refinery, which is expected to enhance the fuel supply chain.
“No right-thinking individual would be comfortable with the current fuel scarcity,” Segun said, noting that the NNPC Ltd. is collaborating with nearly a thousand filling stations nationwide to keep them open longer and prevent product diversions. “We are engaging relevant authorities to ensure timely deliveries and prevent diversions.”