The Nigerian National Petroleum Company (NNPC) Limited asserts that market forces determine the price of premium motor spirit (PMS), also known as gasoline.
Adedapo Segun, leader VP of downstream at the NNPC, talked on TVC News’ ‘Columnists’ Home base’ program on Thursday.
The National Nuclear Power Corporation (NNPC) raised the price of gasoline nationwide on September 3.
At a Lagos NNPC filling station, the product’s price was increased to N855 per liter from approximately N600.
Also, the NNPC’s Abuja outlets are said to be selling the product for as much as N897 per liter.
However, despite the increase, the product has remained scarce, resulting in nationwide lengthy filling lines.
According to Section 205 of the Petroleum Industry Act (PIA), which established the NNPC, Segun gasoline prices are determined by “unrestricted free market forces.”
According to Segun, the market has been deregulated, which means that the price of gasoline is now determined by market forces rather than the government or the NNPC.
“As an additional factor, the exchange rate has a significant impact on these prices.”
According to the vice president of the NNPC, no right-thinking individual would be content with the current shortage of gasoline.
According to Segun, the Nigerian oil company has nearly a thousand filling stations across the country and is working with marketers to “ensure that stations open early and close late, in order to maintain an adequate fuel supply to meet the needs of Nigerians.”
Additionally, we are working with the appropriate authorities to ensure that products are not diverted and that they are delivered promptly to all stations,” he stated.
As more stations calibrate and begin operating, “the scarcity should ease in the next few days.”
Segun stated that the NNPC is for the September 15 deadline provided by the refinery when the lifting of PMS began.
Olufemi Soneye, a spokesperson for NNPCL, released a statement stating that Adedapo Segun, the company’s Executive Vice President of Downstream, made the disclosure while appearing on TVC News’ “Journalists’ Hangout” show on Thursday. Segun’s remarks come as Nigerians groan about the latest price hike for gasoline by NNPCL retail outlets, which increased to N855 and N897 from N617, while product scarcity continues.
Segun responded by stating that it was anticipated that the current fuel shortage would “subside in a few days as more stations recalibrate and begin selling PMS.”
He emphasized that the Petroleum Industry Act, which established NNPC Ltd., stipulated in Section 205 that free and unrestricted market forces would determine petroleum prices.
He says, “The market has been deregulated, which means that the price of gasoline is now determined by market forces rather than the government or NNPC Ltd., and the exchange rate plays a significant role in influencing these prices.”
In the meantime, both the Nigeria Labour Congress and the Trade Union Congress have voiced their opposition to the most recent fuel and demanded its immediate reversal.
After the meeting, the Minister told journalists that the issue of the product’s scarcity will be addressed, but that the Federal Government will not intervene in determining the price of gasoline, as Nigerians have requested.
He claims that the country is currently supplied with enough gasoline by the NNPCL to alleviate the shortage.
He went on to say that once the product is available nationwide, its price will stay the same.
However, the fact that the government does not set prices is crucial. This industry lacks regulation. Additionally, we believe that as more products become available, the price will stabilize. And Nigeria should be aware of this,” Lokpobiri stated.
He stated, “What matters is that products are available in the country.”
From now until the weekend, we anticipate that products will be readily available throughout the nation.
“The price may be significantly higher in some other locations, significantly higher in others, and significantly higher in others than you are aware of in other locations.
However, we believe that the price will have stabilized by the time products are available nationwide.
However, the fact that the government does not set prices is crucial. This industry lacks regulation. Additionally, we believe that as more products become available, the price will stabilize. And Nigeria should be aware of this,” Lokpobiri stated.
In a similar vein, Kalu Okuoha, Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that efforts to stabilize the country’s gasoline supply are ongoing.
He claimed that the efforts would have a positive effect on price stability.
“The regulator wants to make sure that all loading depots have more hours of operation;” In areas where safety permits truck outs as well, vessels are promptly cleared.
