NNPC Says Current Petrol Pump Price Is ‘Not Full Market Price Yet’, Gives Reasons
- 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).
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He stated this during an interview on Arise TV's on Thursday, September 5, 2024, which was monitored by Legit.ng.
Segun also explained the problems the company is facing regarding petrol supply.
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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, 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."
NNPC hopes for a market-driven approach
Segun further 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 that fully adopted would bring competition to the industry and quality services to Nigerians.
On scarcity, he assured that it will disappear from filling stations across the country in a few days when marketers recalibrate their metres as there are supplies.
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.
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Source: Legit.ng
