Adedapo Segun, Executive Vice President of the Nigerian National Petroleum Company Limited (Downstream), has warned that the scarcity of Premium Motor Spirit (PMS), commonly known as petrol, is expected to worsen.
Segun was reacting to the recent hike in the pump price of the product.
On Tuesday, there was an increase in the price of petrol from the previous N568-N617 per litre to N855 to N897, depending on the location, and this has been implemented across NNPC filling stations.
The price hike has had a significant impact, forcing some Nigerians to walk long distances and causing others to miss work due to rising transportation costs.
Speaking on Arise Television on Thursday, the NNPCL official stressed the importance of a perfectly competitive market to achieve stable fuel prices and consistent supplies in Nigeria.
He emphasized that fuel prices should be driven by market forces, not controlled by any single entity, stating, “The current pump price is not market reflective. NNPCL being the sole importer of PMS in the country is abnormal.”
“We should be moving towards a situation where the free market determines prices.”
According to him, NNPCL’s role as the sole importer of PMS, was not a deliberate choice by the company but a response to market conditions.
He said: “Let me put it in the proper context. NNPCL is not a regulator. NMDPRA is the regulator for the sector. NNPC is just a limited liability company, another player in the market.
“So, we didn’t choose to be the sole importer. We don’t determine who plays in the market. What we do is we come in when others refuse to come in for some reasons. FX liquidity is a major reason. It’s not about wanting to be monopolists.
“We are looking up to when the free market condition will run things. What we are doing is picking up what others are unable to supply into the system. We will stop doing that as soon as others are able to supply.”
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