The Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), Adedapo Segun, says the company wants a competitive market to ensure stable fuel prices and supply in Africa’s most populous nation.
According to Segun, the current fuel pump price does not accurately reflect prevailing market conditions.
“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 said on Arise Television’s Morning Show on Thursday, September 5.
Segun said 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 said that achieving a stable fuel supply and price would require 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,” he added.