“It’s Determined by Market Forces” – NNPC on Petrol Price Hike

The Nigerian National Petroleum Company (NNPC) Limited has stated that the recent increase in petrol prices is driven by market forces, not governmental control.

Speaking on TVC News’ Journalists’ Hangout on Thursday, Adedapo Segun, Executive Vice-President of Downstream at NNPC, clarified that the price of Premium Motor Spirit (PMS), commonly known as petrol, is now regulated by “unrestricted free market forces” as mandated by the Petroleum Industry Act (PIA).

On September 3, 2024, petrol prices at NNPC retail outlets across Nigeria surged. In Lagos, prices rose from approximately N600 to N855 per litre, with some stations in Abuja reportedly selling for as high as N897 per litre. Despite the hike, fuel shortages have persisted, resulting in long queues at filling stations nationwide.

Segun explained that this deregulation has transferred price control from the government to the market, adding that exchange rates significantly influence the cost of petrol. “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC,” he said.

Acknowledging the current fuel scarcity, Segun assured Nigerians that the NNPC is working closely with independent marketers to ease the situation. “We are collaborating with marketers to ensure that stations open early, close late, and maintain adequate fuel supplies,” he stated. Additionally, the NNPC is liaising with authorities to prevent product diversions and ensure timely deliveries across the country.

Segun expressed optimism that fuel availability will improve in the coming days as more stations recalibrate their systems and resume full operations.

He also confirmed that NNPC is on track to begin lifting petrol from the Dangote Refinery by the anticipated September 15, 2024, timeline.