The Nigerian National Petroleum Company (NNPC) Limited, on Thursday, said the price of Premium Motor Spirit (PMS), is determined by market forces.
NNPC Executive Vice-President of Downstream, Adedapo Segun, disclosed this during Television Continental’s Journalists’ Hangout.
The NNPC had on Tuesday increased the price of petrol across its retail outlets.
The price of the product at NNPC filling stations was increased to N855 per litre, from about N600.
Despite the hike, the product has remained scarce, leading to long queues in fillings nationwide.
Reacting to the situation, Segun noted that petrol prices are determined by “unrestricted free market forces” as stipulated in Section 205 of the Petroleum Industry Act (PIA), which established the NNPC.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC.
“Additionally, the exchange rate plays a significant role in influencing these prices,” he said.
The NNPC vice-president who said no right-thinking individual would be comfortable with the current petrol scarcity added that the oil company is collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of 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,” Segun added.
