Nigerians have been advised to prepare for further fuel scarcity following the latest hike in petroleum product prices. Adedapo Segun, the Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), issued the warning during an appearance on Arise Television’s Morning Show on Thursday.
Segun stressed the importance of creating a perfectly competitive market to stabilize fuel prices and supply in the country. He raised concerns that the current pump price does not align with actual market conditions.
“The pump price today is not market reflective. NNPCL is the sole importer of PMS in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” Segun explained, advocating for market-driven pricing rather than control by a single entity.
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Segun clarified that NNPCL’s position as the sole importer of Premium Motor Spirit (petrol) is not intentional, but rather a reaction to market conditions. He emphasized that the company stepped in when other players in the market scaled back their activities, refuting claims that the NNPCL desires to monopolize the sector.
“NNPC is not a regulator. We didn’t choose to be the sole importer. We stepped in when others reduced their participation. It’s not about wanting to be monopolists,” Segun said.
He also pointed out that to achieve a stable fuel supply and fair pricing, ideal market conditions must be met, including a more liquid foreign exchange (FX) market. “Market conditions need to be perfect, and there must be FX liquidity,” he noted, suggesting that larger economic reforms are required to resolve the ongoing pricing issues.
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The NNPCL has been working closely with private refineries, particularly the Dangote Refinery, to ensure a steady supply of crude oil for local refining. “We have supplied about 30 million barrels to Denmark so far. Six-point-three million this month, and we will supply 11.3 million in October,” Segun revealed, signaling efforts to maintain fuel supply amidst the growing concerns over scarcity.
This development comes at a time when Nigerians are already grappling with the rising cost of living, with many now worried about the impact of fuel shortages and further price increases.