The Nigerian National Petroleum Company Limited (NNPCL) has stated that Foreign Exchange (FOREX) illiquidity is a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS).
It further stated that FOREX Illiquidity are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA).
Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, Executive Vice President (Downstream), NNPCL, Mr. Adedapo Segun, explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
Mr Segun stated in a press release by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye, that Section 205 of the PIA, which established NNPCL, stipulated that petroleum prices were determined by unrestricted free market forces.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPCL. 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 the NNPCL was awaiting the September 15th timeline provided by the refinery.
He said no right-thinking individual would be comfortable with the current fuel scarcity. He added that the NNPCL had nearly a thousand filling stations nationwide and was collaborating with marketers.
The collaboration, he said, was to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure products 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.”
