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Real reason for fuel price hike – NNPC
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has highlighted that the scarcity of foreign exchange (forex) is a key driver behind the recent hike in Premium Motor Spirit (PMS) prices.
It said fuel prices are now influenced by open market dynamics, as outlined by the Petroleum Industry Act (PIA) of 2021.
During an appearance on TVC News’ “Journalists’ Hangout,” NNPC Ltd.’s executive vice president for downstream operations, Mr. Adedapo Segun, addressed the ongoing fuel scarcity.
He reassured Nigerians that the situation should improve within a few days as fuel stations complete recalibration processes and resume normal sales of PMS.
Segun emphasized that section 205 of the PIA has fully deregulated the market, meaning that fuel prices are no longer controlled by the government or NNPC Ltd., but by market forces. He noted, “The exchange rate has become a major factor affecting petrol prices, given the deregulation.”
In discussing fuel supply from the Dangote Refinery, Segun mentioned that the NNPC Ltd. is anticipating the refinery’s operations to begin by the September 15th timeline.
Acknowledging the frustration of the current scarcity, Segun explained that NNPC Ltd. is working closely with marketers and nearly 1,000 filling stations across the country to ensure longer operating hours and an adequate fuel supply.
“We are actively engaging with relevant authorities to prevent product diversion and ensure timely deliveries to all stations. The scarcity should ease in the coming days,” Segun assured Nigerians.