The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (petrol) from the Dangote Refinery is expected to enter the market on September 15, 2024.
The organization disclosed this information in a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja, indicating that market forces would determine product pricing.
The commencement of petrol refining by the Dangote Refinery earlier in the week has led to this development.
Quoting NNPCL’s Executive Vice President of Downstream, NNPC Ltd, 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.
According to him, “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.”
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 expressed his discomfort with the ongoing fuel shortage, emphasizing that no rational person would find it acceptable. He highlighted that NNPC Ltd possesses approximately one thousand filling stations across the nation and is actively collaborating with marketers to ensure extended operating hours and adequate fuel supply to meet the demands of Nigerian citizens.
He reassured Nigerians, “We are actively collaborating with the appropriate authorities to guarantee that product diversions are prevented and prompt deliveries are made to all stations. The scarcity is anticipated to alleviate in the upcoming days as more stations readjust and resume operations.”