Fuel Hike: Market Forces will Now Dictate Prices – NNPCL Official

The Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), Adedapo Segun, has emphasised the need for a perfectly competitive market to ensure stable fuel prices and supply in Nigeria.

He expressed concern that the current pump price does not accurately reflect prevailing market conditions.

Segun made this statement during an appearance on Arise Television’s Morning Show on Thursday.

“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,” he said, stressing that market forces, rather than any single entity, should dictate fuel prices.

Segun clarified that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company but a response to market conditions.

“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,” he explained.

He also stated that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.

“Market conditions need to be perfect, and there must be FX liquidity,” he added, suggesting that broader economic reforms may be necessary to address the fuel pricing issue.

NNPCL has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for refining.

“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” Segun revealed.