NNPC blames market forces for petrol price hike amidst nationwide scarcity

The Nigerian National Petroleum Company (NNPC) Limited has attributed the recent increase in petrol prices to market forces, as outlined in the Petroleum Industry Act (PIA).

Adedapo Segun, NNPC’s executive vice-president of downstream, discussed the issue during an appearance on TVC News’ ‘Journalists’ Hangout’.

On September 3, the NNPC raised petrol prices at its outlets, with prices reaching N855 per litre in Lagos and up to N897 in Abuja.

Despite this increase, fuel scarcity persists across the country, causing long queues at filling stations.

Segun emphasized that petrol prices are now dictated by an unrestricted free market, influenced heavily by the exchange rate.

“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC,” Segun said.

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“Additionally, the exchange rate plays a significant role in influencing these prices.”

Segun said the national oil company has nearly a thousand filling stations nationwide and is collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians”.

“We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured,” he said.

“The scarcity should ease in the next few days as more stations recalibrate and begin operations.”

On the commencement of lifting PMS from the Dangote refinery, Segun said the NNPC is for the September 15 timeline provided by the refinery.