‘It’s determined by market forces’ — NNPC speaks on petrol price hike

The Nigerian National Petroleum Company (NNPC) Limited says the price of premium motor spirit (PMS), also known as petrol, is determined by market forces.

Adedapo Segun, executive vice-president of downstream at the NNPC, spoke on TVC News’ ‘Journalists’ Hangout’ programme on Thursday.

On September 3, the NNPC increased the price of petrol at its retail outlets across the nation.

The price of the product was increased to N855 per litre — from about N600 — at an NNPC filling station in Lagos.

Also, the product is reportedly for as high as N897 per litre in outlets operated by the NNPC in Abuja.

But despite the hike, the product has remained scarce, leading to long queues in fillings nationwide.

Speaking on the situation, Segun petrol prices are determined by “unrestricted free market forces” as stipulated in Section 205 of the Petroleum Industry Act (PIA), which established the NNPC.

“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC,” Segun said.

“Additionally, the exchange rate plays a significant role in influencing these prices.”

The NNPC vice-president said no right-thinking individual would be comfortable with the current petrol scarcity.

Segun said the national oil company has nearly a thousand filling stations nationwide and is collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians”.

“We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured,” he said.

“The scarcity should ease in the next few days as more stations recalibrate and begin operations.”

On the commencement of lifting PMS from the Dangote refinery, Segun said the NNPC is for the September 15 timeline provided by the refinery.