Petrol scarcity will worsen, says NNPC

Adedapo Segun, Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), has warned that the scarcity of Premium Motor Spirit (PMS), also known as petrol, is set to worsen.

His comments follow a recent spike in petrol prices, with rates soaring from N568-N617 to as high as N855-N897 per litre, depending on the location.

The price increase, implemented across NNPC filling stations, has led to significant disruptions, with many Nigerians resorting to long-distance walking due to unaffordable transportation costs.

Others have been unable to report to work as prices continue to rise.

While emphasizing that market forces, rather than any single entity, should dictate fuel prices, he said: “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.”

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.”