..says PMS Prices are Determined by Free Market Forces.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that it is awaiting the September 15th timeline provided by the Dangote Refinery to commence the lifting of PMS from the Refinery.
According to a statement by the Chief Corporate Communications Officer, NNPC Ltd. , Olufemi Soneye, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun stated this while speaking on TVC News’ “Journalists’ Hangout” show on Thursday. He explained that beyond the payment terms that had been agreed, the 2 firms are still working on the commercial terms that will govern the purchase of products.
Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.” He attributed the disruptions that has hampered availability of products to foreign exchange (forex) illiquidity, among other factors.
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.”
He said that Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.
Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure products 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.”