NNPC warns of further hike in pump price of petrol, calls for reforms

The Nigerian National Petroleum Company Limited (NNPCL) has cautioned Nigerians to brace for further fuel scarcity, highlighting the ongoing challenges in the country’s fuel supply chain.

 This warning was issued by Adedapo Segun, Executive Vice President of NNPCL (Downstream), during a televised interview on Thursday.

Segun’s comments follow a recent hike in fuel prices, which has already intensified economic hardships across Nigeria.

He stressed the need for a competitive market to ensure stable fuel prices and consistent supply, noting that the current pump prices do not accurately reflect market realities.

“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 stated, emphasizing that market forces, not a single entity, should dictate fuel prices.

Segun clarified that NNPCL’s dominant role as the sole importer of Premium Motor Spirit (petrol) was not by design but rather a response to other market participants reducing their involvement.

“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,” he explained.

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To achieve stable fuel supply and pricing, Segun argued that ideal market conditions are essential, including a more liquid foreign exchange (FX) market.

He hinted that broader economic reforms may be necessary to address the underlying issues affecting fuel pricing.

NNPCL is also collaborating with private refineries like Dangote to secure a steady supply of crude oil for refining.

“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” Segun revealed.

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As Nigeria faces the prospect of more fuel scarcity, Segun’s remarks underscore the urgent need for market-driven solutions to stabilize the country’s energy sector.