The recent surge in petrol prices has significantly impacted Nigerians nationwide.
Sadly, the Executive Vice President (Downstream) of the Nigerian National Petroleum Company Limited (NNPCL), Adedapo Segun, has made it known that this is just the beginning.
In fact, Segun has urged Nigerians to brace for more fuel scarcity.
His warning follows a Tuesday announcement by the NNPC.
Via that announcement, the NNPC adjusted the pump price per litre of petrol to ₦855 across its filling stations.
However, Segun spoke on Thursday on Arise Television’s Morning Show.
On the show, he emphasised the importance of establishing a competitive market to stabilise fuel prices and ensure a steady supply.
Fuel Prices
Segun echoed: “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.”
Also, he highlighted that pricing should be dictated by competitive forces rather than a single entity.
Meanwhile, Segun revealed that NNPCL’s position as the exclusive importer of Premium Motor Spirit (PMS) was not by design.
To him, it was a reaction to shifting market dynamics.
Furthermore, he made it clear that the company did not intend to monopolize the market.
“Let me put it in the proper context. NNPCL is not a regulator. We didn’t choose to be the sole importer. We don’t determine who plays in the market.
We stepped in when others reduced their participation.
It’s not about wanting to be monopolists,” Segun clarified.
Importantly, the NNPC official added that the company’s role emerged due to a lack of participation from other market players.
Additionally, Segun pointed out that for fuel prices to stabilise, there must be ideal market conditions, especially concerning foreign exchange availability.
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“Market conditions need to be perfect, and there must be FX liquidity,” he remarked, implying that resolving the pricing issue would likely involve broader economic reforms to improve liquidity and competition in the market.
#FuelScarcity
The scarcity, already visible across the country, is linked to NNPCL’s challenges in managing fuel imports and debts to suppliers.
This spike in fuel costs has further strained the pockets of Nigerian citizens, many of whom are already grappling with the high cost of living.
The situation has also sparked concerns about the potential impact on transportation costs and the prices of goods and services, which are likely to rise as a result.