NNPC Ltd. Attributes PMS Price Fluctuations to Free Market Dynamics
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Abuja, Sept.8, 2024 (NAN) – NNPC Ltd. has attributed the fluctuating prices of Premium Motor Spirit (PMS) to foreign exchange illiquidity and unrestricted free market forces, as stipulated by the Petroleum Industry Act (PIA 2021).
Mr. Adedapo Segun, Executive Vice President of Downstream at NNPC Ltd., stated that the current fuel scarcity is expected to improve soon, with more stations beginning to sell the product.
Segun emphasized that Section 205 of the PIA, which established NNPC Ltd., mandates that petroleum prices are set by free market dynamics rather than government or NNPC Ltd. intervention. He added that the exchange rate significantly affects these prices.
Regarding the commencement of PMS deliveries from the Dangote Refinery, Segun mentioned that NNPC Ltd. is awaiting the refinery’s September 15 timeline. The company plans to supply 17.6 million barrels of crude oil to the refinery between September and October 2024 to boost local production.
“We have already supplied about 30 million barrels of crude oil to the Dangote Refinery. This month, we will deliver 6.3 million barrels in seven cargoes, and in October, 11.3 million barrels in 13 cargoes,” Segun said. He assured that efforts are being made to normalize the situation.
With approximately 1,000 fuel stations nationwide, NNPC Ltd. is working with marketers to ensure stations operate longer hours and maintain a steady fuel supply. The company is also engaging with authorities to prevent product diversion and ensure timely deliveries.
“The scarcity should ease in the coming days as more stations recalibrate and resume full operations,” Segun concluded.
