The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that the recent fluctuations in the prices of Premium Motor Spirit (PMS) are primarily driven by free market forces and forex illiquidity, as outlined in the Petroleum Industry Act (PIA) of 2021. The company asserts that these factors are contributing to the ongoing fuel scarcity, which it expects to resolve in the coming days.

In a statement made on TVC News’ “Journalists’ Hangout” show, Mr. Adedapo Segun, Executive Vice President of Downstream at NNPC Ltd., provided insights into the current situation. Segun explained that the PIA’s deregulation of the market means that petroleum prices are no longer controlled by the government or NNPC Ltd. Instead, they are subject to market dynamics and the fluctuating exchange rate.

“The market has been deregulated,” Segun emphasized. “Petrol prices are now determined by market forces rather than by government intervention or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

Regarding the current fuel scarcity, Segun acknowledged that no one would be comfortable with the situation and reassured the public that efforts are underway to address it. He highlighted that NNPC Ltd. operates nearly a thousand filling stations across the country and is working closely with marketers to ensure a more stable fuel supply. “We are collaborating with marketers to ensure that stations open early, close late, and maintain adequate fuel supply to meet the needs of Nigerians,” Segun stated.

On the issue of fuel supply from the Dangote Refinery, Segun confirmed that NNPC Ltd. is expecting to commence lifting PMS from the refinery by the September 15th timeline provided. He expressed confidence that the scarcity would ease as more stations recalibrate and resume operations.

Segun also assured that NNPC Ltd. is actively engaging with relevant authorities to prevent product diversion and ensure timely deliveries to filling stations. “The scarcity should ease in the next few days as more stations recalibrate and begin operations,” he added.

The statement underscores NNPC Ltd.’s commitment to addressing the fuel scarcity crisis and providing Nigerians with a reliable supply of petroleum products amidst the challenges posed by market forces and forex issues.