Nigerians may have to pay more for petrol, which was recently increased as the Nigerian National Petroleum Company Limited (NNPCL) has said that the current pump price of the product does not reflect market conditions.
Adedapo Segun, the Executive Vice President of NNPCL’s Downstream sector, shared this forecast during his appearance on Arise Television’s Morning Show on Thursday. Segun stressed the need for a fully competitive market to stabilize fuel prices and supply, pointing out that the current pump price does not accurately reflect market conditions.
“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,” Segun said, emphasizing that fuel prices should be influenced by market forces rather than a single entity.
He further explained that NNPCL’s status as the sole importer of Premium Motor Spirit (petrol) was a response to market conditions rather than a deliberate decision by the company.
“Let me put it in the proper context. NNPC 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 clarified.
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Segun also noted that ensuring a stable fuel supply and price requires optimal market conditions, including a more liquid foreign exchange market.
“Market conditions need to be perfect, and there must be FX liquidity,” he added, suggesting that broader economic reforms might be needed to resolve the fuel pricing challenges.
Additionally, NNPC has been collaborating with private refineries such as Dangote to maintain a steady supply of crude oil for refining.
“We have supplied about 30 million barrels to Dangote so far. Six-point-three million this month, and we will supply 11.3 million in October,” Segun disclosed.
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