Fuel Hike: Pump Price Yet Reflect Market Conditions — NNPC

Adedapo Segun, the Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), states that the organization seeks a competitive market to guarantee steady gasoline supplies and prices in the most populated country in Africa.

Segun claims that the price of fuel at the pump does not fairly represent the state of the market.

“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 said, stressing that market forces, rather than any single entity, should dictate fuel prices.” Segun said on Arise Television’s Morning Show on Thursday, September 5.

According to Segun, NNPCL’s position as the exclusive importer of Premium Motor Spirit (petrol) is a result of market realities rather than a conscious decision made by the business.

“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,” he explained.

He stated that a more liquid foreign exchange market would be necessary to achieve a consistent fuel supply and price.

“Market conditions need to be perfect, and there must be FX liquidity,” he added, suggesting that broader economic reforms may be necessary to address the fuel pricing issue.NNPCL has been working closely with private refineries, such as Dangote, to ensure 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,” he added.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli