See the real cost of fuel price as NNPC says current pump price is not full market yet

• The NNPC Limited has said that the current petrol pump price of N897 per litre is not reflective of market reality
• Adedapo Segun explained that fuel in Nigeria is still very cheap when compared to other African countries in dollar terms
• He hopes that one day Nigeria will operate a free-market pricing system and there will be more competition

Adedapo Segun, the Vice President of Downstream at the Nigerian National Petroleum Company(NNPC), has stated that the current pump price of petrol does not reflect market conditions.

He emphasized that despite the increase from N617 to over N890 per litre, prices could be higher if Nigeria fully implements the Petroleum Industry Act (PIA).

NNPC hints on further changes in fuel prices Photo credit: Bloomberg/contributor
Source: Getty Images

He said

"You may recall that I previously mentioned that petrol prices tend to be high during the summer months and drop as we approach winter. "In markets where prices are determined by the market, you would expect to see a decrease during these colder months. However, our situation is different."South Africa and Tanzania you mentioned reduced their fuel prices, it because of full market pricing. However, despite these reductions, Nigerians are still paying less in dollar terms. "If you compare prices from those markets to ours, adjusted for equivalent currencies, you'll find that our prices are significantly lower."We have not yet fully implemented market-based pricing for PMS, which is why the behavior of PMS prices in Nigeria cannot be directly compared to markets where prices are fully market-driven."

Segun explained that the Petroleum Industry Act (PIA) provides for a free-market petrol pricing system where different players can source the product and sell at market-based prices.

He said if fully adopted it will bring competition to the industry and quality services to Nigerians.

On scarcity assured that it fizzles out in the next few days.

Dangote sends message to Nigerians on petrol price from refinery

Earlier, Legit.ng reported that Aliko Dangote has sent a message to Nigerians regarding petrol pricing from his refinery.

The refinery, which recently began production, has been praised as a game-changer, and Femi Otedola has also expressed excitement.

Petrol from the refinery is expected to be available to Nigerians in a few days as NNPC and Dangote complete formalities.

Source: Legit.ng