The Nigerian National Petroleum Company Limited (NNPCL) has announced that petrol from the Dangote Refinery will start entering the market on September 15, 2024.
According to Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, the price of Premium Motor Spirit (PMS) will be determined by market forces rather than being set by the company.
This update reflects the full deregulation of the downstream sector, as stated by Adedapo Segun, Executive Vice President of Downstream at NNPCL.
With this move, NNPCL confirms that it will no longer fix the prices of petrol, allowing market dynamics to dictate pricing.
“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.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, relayed a statement from Adedapo Segun, Executive Vice President of Downstream at NNPCL, indicating that the current fuel scarcity is expected to ease within a few days as more stations recalibrate and resume selling Premium Motor Spirit (PMS).
Segun further explained that under Section 205 of the Petroleum Industry Act (PIA), which established NNPC Ltd, petroleum prices are determined by unrestricted free market forces. As a result, NNPCL will no longer set fuel prices, allowing market conditions to dictate costs.
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, 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.”
He assured 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.”
