The Nigerian National Petroleum Company Limited (NNPC Ltd.) has attributed the recent spike in fuel prices to the persistent shortage of foreign exchange (forex) and the devaluation of the naira. This, the company says, is a key factor affecting the fluctuating cost of Premium Motor Spirit (PMS), which is now regulated by market dynamics in line with the Petroleum Industry Act (PIA) of 2021.
During an interview on TVC News’ “Journalists’ Hangout” program, Mr. Adedapo Segun, the Executive Vice President of NNPC Ltd.’s downstream operations, highlighted that the current fuel scarcity is expected to ease in a few days as more filling stations adjust their systems and resume normal sales.
Segun emphasized that Section 205 of the PIA mandates that fuel prices in Nigeria are now subject to free market forces, which means neither the government nor NNPC Ltd. has control over pricing.
“In a deregulated market, the exchange rate plays a crucial role in determining fuel prices,” Segun stated, stressing that the volatility of the naira directly influences fuel costs.
Regarding the anticipated distribution of PMS from the Dangote Refinery, Segun noted that NNPC Ltd. is awaiting the refinery’s projected September 15th date to begin product lifting.
He also addressed the public’s frustration over the fuel scarcity, assuring that NNPC Ltd. is working closely with fuel marketers to extend operational hours at stations across the country. “We are collaborating with marketers to ensure stations open early and close late, maintaining a steady fuel supply to meet the needs of Nigerians,” he said.
Segun further reassured the public that NNPC Ltd. is coordinating with relevant authorities to prevent product diversion and ensure timely deliveries to filling stations. He added that the situation is expected to stabilize in the coming days.
