The Nigerian National Petroleum Company Limited (NNPCL) has announced that petrol from the Dangote Refinery is expected to start entering the market on September 15, 2024.
In a statement issued on Thursday in Abuja, signed by Chief Corporate Communications Officer Olufemi Soneye, NNPCL indicated that the pricing of the product will be governed by market forces.
This follows the recent start of petrol refining at the Dangote Refinery.
Adedapo Segun, NNPCL’s Executive Vice President of Downstream, clarified that the downstream sector has been fully deregulated, and as such, NNPCL will no longer set prices.
This statement addresses previous concerns and rumors suggesting that NNPCL might continue to control prices or that it would be the sole entity handling petrol from the Dangote Refinery.
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“The Nigerian National Petroleum Company Limited (NNPC Ltd) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA),” the statement said in part.
While quoting Segun, NNPCL explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He noted that Section 205 of the Petroleum Industry Act (PIA), which established NNPC Ltd, mandates that petroleum prices be determined by unrestricted free market forces.
According to him, “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.”
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Regarding the start of petrol lifting from the Dangote Refinery, Segun stated that NNPC Ltd is anticipating the September 15 timeline set by the refinery.
He acknowledged that the current fuel scarcity is concerning, but reassured that NNPC Ltd operates nearly a thousand filling stations nationwide.
The company is working with marketers to ensure that stations open early and close late, aiming to maintain a sufficient fuel supply to meet the needs of Nigerians.
He assured Nigerians: “We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”
Segun’s clarification follows the Federal Government’s announcement of a substantial petrol supply over the weekend due to vessels beginning to offload, while also confirming that price fixing for PMS would not be implemented.
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