The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent increase in the pump price of Premium Motor Spirit (Petrol) to the influence of Foreign Exchange and unrestricted free market forces.
According to a statement by NNPCL spokesperson, Olufemi Soneye, the Executive Vice President of Downstream of the Company, Adedapo Segun, made this disclosure while speaking on TVC News’ “Journalists’ Hangout” show on Thursday.
Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.” He stressed that Section 205 of the Petroleum Industry Act, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices,” Segun said.
The NNPCL’s explanation comes as Nigerians continue to groan over the latest price hike, which has seen petrol prices rise to N855 and N897 from N617 at NNPCL retail outlets. The product scarcity persists, with many stations still closed due to the shortage.
The Nigeria Labour Congress and the Trade Union Congress have rejected the price hike, calling for its immediate reversal. The labour unions argue that the increase will further exacerbate the economic hardship faced by Nigerians.
