The Executive Vice President of Nigerian National Petroleum Company Limited (NNPCL), Adedapo Segun, has stated that the price of fuel does not reflect the market condition, News About Nigeria reports.
He stated this while speaking in an interview on Arise Television’s Morning Show on Thursday.
He noted that Nigerians will have to prepare for further fuel scarcity following the recent hike in the pump price of petroleum products.
According to him, the market is not competitive, which has led to an unstable price and supply of fuel in the country.
He also expressed concern that the current pump price does not accurately reflect market conditions.
Segun further clarified that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company, but rather a response to market conditions.
He stated, “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 drive fuel prices.
“NNPC 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.
“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.
NNPC 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. Six-point-three million this month, and we will supply 11.3 million in October.
