By The New Diplomat Business Desk
The Nigerian National Petroleum Company Limited (NNPC Ltd) has clarified that the recent hike in prices of Premium Motor Spirit (PMS), also known as fuel was caused by free market forces.
The Executive Vice President of Downstream, NNPC Ltd, Mr. Adedapo Segun, who spoke with the press on Thursday explained that pump prices of fuel are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA).
He stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of fuel.
He said Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by unrestricted free market forces.
He said: “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 also assured Nigerians that the current fuel scarcity was expected to “subside in a few days as more stations re-calibrate and begin selling PMS.”
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd has 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.”
He said: “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 re-calibrate and begin operations.”
