The Nigerian National Petroleum Company Limited (NNPCL) has attributed the fluctuations in Premium Motor Spirit (PMS) prices, commonly known as petrol, to foreign exchange illiquidity.
According to NNPCL, these price variations are driven by free market forces, as stipulated in the Petroleum Industry Act (PIA).
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The latest price increases, implemented by NNPCL Retail Management, have raised petrol prices to between N855 and N897 per litre, up from the previous N568-N617 range. Independent marketers have adjusted their prices even higher, ranging from N930 to N1,200 per litre.
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Adedapo Segun, Executive Vice President of Downstream at NNPCL, stated on national television that the current fuel scarcity is anticipated to ease in a few days as more fuel stations adjust their operations and begin selling PMS.
A statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPCL, quoted Segun to have said Section 205 of the PIA, which established the company, 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,” he said.
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