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HomeNaija NewsFuel price fluctuation due to forex illiquidity —- NNPCL

Fuel price fluctuation due to forex illiquidity —- NNPCL

The Nigerian National Petroleum Company Limited, NNPCL has said the fluctuation in prices of premium mother spirit (PMS) commonly called petrol, is due to problems with foreign exchange (forex).

This was made known in a statement by the Chief Corporate Communications Officer, Olufemi Soneye, on Thursday, 5th of September, 2024.

The statement quoted the Vice President of Downstream, NNPCL, Adedapo Segun, explaining that the exchange rate plays a significant role in influencing petrol prices.

The statement reads:

“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), 2021.

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“Speaking on TVC News’ ‘Journalists Hangout’ show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., 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 said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.

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“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’.

“On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery.

“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’.

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“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’.” [CONTINUE READING HERE]>>>>>



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