Yoruba Assembly: NNPC not manipulating petrol price — market has been deregulated

Yoruba Stakeholders Assembly, a socio-cultural group, says the Nigerian National Petroleum Company (NNPC) is not manipulating the prices of petrol.

The group said NNPC cannot determine the actual price of petrol from the Dangote Petrochemical Refinery since the downstream sector has been deregulated.

In a statement issued by Dayo Olawale, convener of Yoruba Stakeholders Assembly, the group lamented the recent “manipulation and speculation” trailing the pricing of petrol in the country.

“Contrary to popular belief, it is imperative to clarify that neither the government nor the Nigerian National Petroleum Company Limited (NNPC Ltd) possesses the authority to fix the price of PMS.

“The pricing mechanism for PMS has undergone a significant transformation, evolving into a deregulated market where market forces predominantly dictate prices.

“This framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.

“In a deregulated market, the price of PMS is influenced by multiple factors, including supply and demand, global oil prices, and operational costs related to refining and distribution.

“The NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.

“Recent discussions have brought to light the fact that NNPC Ltd procured fuel from Dangote Refinery at a cost of N898 per litre.

“It is critical to emphasize that NNPC Ltd’s engagement with Dangote was aimed exclusively at ensuring that Nigerians have access to fuel at a fair price.

“This negotiation process underscores NNPC Ltd’s commitment to representing the interests of the Nigerian populace.

“For the past year, the market price of petrol has hovered around N1,100 per litre.

“However, thanks to the proactive measures undertaken by NNPC Ltd, ordinary Nigerians have been shielded from these soaring prices, benefiting from a subsidized rate of N620 per litre.

“This has been possible due to NNPC Ltd covering the shortfall — an effort that, while noble, has become an unsustainable endeavor.

“The cry for sustainability reflects NNPC Ltd’s commitment to balancing providing affordable fuel and maintaining fiscal responsibility.

“There is a misconception that the government dictated the pricing structure for Dangote’s fuel.

“In actuality, it is Dangote who independently decided to sell his refined fuel to NNPC Ltd at N898 per liter.

“Initial negotiations revealed Dangote’s proposed price to be well over N900 per liter, which NNPC Ltd successfully negotiated down to a more manageable rate for the benefit of the Nigerian consumer.”

The group asked Nigerians to remain vigilant and verify issues in the public domain before commenting.

On Monday, NNPC said petrol will be sold at N950.22 per litre across all its retail outlets in Lagos.

NNPC said the estimated pump price is based on prices set by the Dangote refinery.

Residents of northern Nigeria will pay more for the product, with those in Borno expected to pay the highest.