The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that Premium Motor Spirit (PMS), commonly known as petrol, from Dangote refinery will flood Nigerian market 15, 2024.
NNPC revealed this in a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye on Thursday in Abuja.
Soneye stated said prices of products will be determined by market forces.
The development follows the commencement of petrol refining by the Dangote Refinery earlier in the week.
Quoting NNPCL’s Executive Vice President of Downstream, NNPCL, Adedapo Segun, Soneye said the downstream sector had been fully deregulated, and the company would no longer fix prices.
His argument puts to rest speculations that NNPCL would continue to fix prices despite announcement that the downstream sector had been deregulated.
The speculation was also fueled by reports that NNPCL would be the sole lifter of petrol from the Dangote refinery.
“The Nigerian National Petroleum Company Limited (NNPC Ltd) has stated that 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),” the statement said in part.
While quoting Segun, NNPCL 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.
“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 stated.
On the commencement of lifting PMS from the Dangote Refinery, Segun said that 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 had nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, to maintain adequate fuel supply to meet the needs of Nigerians.”
“We are also engaging relevant authorities to ensure product 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,” he assured Nigerians.
