The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery will start reaching the market from September 15, 2024.
This was disclosed in a statement signed by the company’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja. NNPCL also confirmed that the prices of petrol will be determined by market forces, as the downstream sector has been fully deregulated.
The announcement comes on the heels of the Dangote Refinery commencing petrol refining operations earlier in the week.
NNPCL’s Executive Vice President of Downstream, Adedapo Segun, reiterated that the company would no longer fix fuel prices, putting an end to speculations that NNPCL might continue to regulate prices despite the deregulation.
“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,” Segun explained.
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The lingering speculation had been fueled by reports that NNPCL would be the sole lifter of petrol from the Dangote Refinery. Addressing this, NNPCL said in its statement: “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).”
Segun also addressed the current fuel scarcity, assuring Nigerians that the situation would ease soon. “The current fuel scarcity is expected to subside in a few days as more stations recalibrate and begin selling PMS,” he stated. He pointed to Section 205 of the Petroleum Industry Act (PIA), which established that petroleum prices would be determined by free market forces.
Looking ahead to the commencement of fuel lifting from the Dangote Refinery, Segun noted that NNPCL is anticipating the September 15th timeline for operations to begin. He further acknowledged the inconvenience caused by the fuel scarcity and NNPCL’s efforts to address the issue. “No right-thinking individual would be comfortable with the current fuel scarcity,” he said, adding that NNPCL is working closely with marketers to ensure that fuel stations operate with extended hours to meet the needs of Nigerians.
To further reassure the public, Segun added: “We are also engaging relevant authorities to ensure product 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.”
