By Halimah Olamide
The Nigerian National Petroleum Company, NNPC Ltd., has tagged foreign exchange (forex) illiquidity a significant factor influencing the price fluctuation of Premium Motor Spirit (PMS), occasioned by unrestricted free market forces.
According to the national oil company, this is provided for in the Petroleum Industry Act (PIA 2021).
Mr Adedapo Segun, the Executive Vice President, Downstream, NNPC Ltd., in a statement explained that the current fuel scarcity is expected to ease off in a few days as more stations will begin selling the product.
Segun said Section 205 of the PIA, which established NNPC Ltd., 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 NNPC Ltd.
“Additionally, the exchange rate plays a significant role in influencing these prices,” he said
On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the Sept. 15 timeline provided by the refinery.
Segun said the NNPC Ltd. would supply a total of 17.6 million barrels of crude oil to Dangote Refinery between September and October 2024 as part of the Federal Government’s push to drive local production of petroleum products.
“We have supplied about 30 million barrels of crude oil to Dangote Refinery so far, and this month alone, we will be providing 6.3 million barrels of crude oil to the refinery in seven cargoes.
“In October, we will be providing another 11.3 million barrels of crude oil to Dangote refinery in 13 cargoes. We are doing everything possible to ensure this situation normalises,” he said.
He said that the NNPC Ltd. has about 1,000 fuel stations nationwide and was collaborating with marketers to ensure that stations opened early and close late to maintain adequate fuel supply to meet the needs of 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,” he said.