The Nigerian National Petroleum Company Limited (NNPC Ltd.) has emphasized that the fluctuation in Premium Motor Spirit (PMS) prices is driven by free market dynamics, as outlined in the Petroleum Industry Act (PIA) of 2021, with foreign exchange (forex) illiquidity playing a key role.
During an appearance on TVC News’ “Journalists’ Hangout” show on Thursday, NNPC Ltd.’s Executive Vice President of Downstream, Mr. Adedapo Segun, addressed the ongoing fuel scarcity, predicting that the situation would improve within a few days as more fuel stations recalibrate and resume PMS sales.
Segun pointed out that under Section 205 of the PIA, which established NNPC Ltd., PMS prices are set by market forces rather than by government intervention or NNPC Ltd. He further highlighted that the exchange rate significantly impacts these prices.
Regarding the anticipated commencement of PMS lifting from the Dangote Refinery, Segun noted that NNPC Ltd. is awaiting the refinery’s September 15th target date.
Acknowledging the inconvenience caused by the current fuel scarcity, Segun mentioned that NNPC Ltd. operates nearly a thousand filling stations across the country. He assured the public that NNPC Ltd. is working closely with marketers to extend station operating hours and maintain a steady fuel supply nationwide.
“We are also engaging with relevant authorities to prevent product diversions and ensure timely deliveries to all stations. The scarcity is expected to ease in the coming days as more stations recalibrate and begin operations,” Segun assured
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