See NNPC explanation of new fuel price at filling stations, gives date scarcity will end

2 weeks ago 3

The Nigerian National Petroleum Company Limited has finally addressed the new fuel prices at filling stations
The oil company's executive director has provided an explanation for the changes and the scarcity
Filling stations operated by NNPCL, as well as independent petroleum marketers, have adjusted their prices to as high as N1,000 per litre

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed the current pump price adjustments at filling stations.

Speaking during an interview monitored by Legit.ng, Adedapo Segun, the Executive Vice President of Downstream, said that the decision had to be taken due to market reality.

He stressed that the current pump price still does not accurately reflect prevailing market conditions.

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Segun emphasised the need for a perfectly competitive market to ensure stable fuel prices and supply in Nigeria.

His words:

"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"

He added that market forces, rather than any single entity, should dictate fuel prices. NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company but a response to market conditions.

“Let me put it in the proper context. NNPCL is not a regulator. We didn’t choose to be the sole importer. We don’t determine who plays in the market. We stepped in when others reduced their participation. It’s not about wanting to be monopolists"

When fuel scarcity in Nigeria

Addressing fuel scarcity, he noted that queues will disappear from filling stations across the country in a few days when marketers complete the recalibration of their metres.

We have a thousand stations around the country, but that’s not enough. We’re working with all of the marketers, engaging with them to ensure that our stations open early and close late, and make sure that there’s enough fuel in all of the stations.

“So, we are ensuring that deliveries are made to stations. We are doing our best to ensure that there are no diversions. When you have price change situation, typically it takes a few days for all of the stations to recalibrate their meters.“So, that’s basically the situation we are in now. I expect that this will fizzle out within the next few days, as more stations calibrate and begin to sell.”

Protest rocks Delta over fuel price

Earlier, Legit.ng reported that youths, women, and commercial tricycle operators in Warri and Effurun metropolises of Delta state took to the streets in a peaceful protest over the persistent fuel scarcity amid the recent price hike.

The protesters marched through the major roads, calling on President Tinubu to urgently intervene and reverse the fuel price hike.

Source: Legit.ng

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