Adedapo Segun, Vice President of Downstream Operations at the Nigerian National Petroleum Company (NNPCL), has expressed concerns that the current petrol pump price does not accurately reflect market conditions and may be set to rise.
Segun pointed out that although the price of petrol has increased from ₦617 per litre to ₦897, this adjustment does not align with typical market trends. He explained, “Historically, we observe that petrol prices peak during the summer and decline as we approach winter. This trend is evident in markets where petrol prices are fully market-driven. However, the current situation in Nigeria does not mirror this pattern.”
He further elaborated, “Nigeria has not yet achieved full market pricing for Premium Motor Spirit (PMS), and thus, our pricing dynamics cannot be directly compared to those in markets with fully market-based pricing structures. A comparison of equivalent prices, adjusted for currency differences, would reveal that our current rates are significantly lower.”
Segun also emphasized that the Petroleum Industry Act (PIA) mandates a market-driven pricing system for petrol, which is intended to foster competition and enhance service quality within the industry. He acknowledged the impact of exchange rate fluctuations on NNPCL’s operations, noting challenges related to foreign exchange liquidity but reassured that the current petrol scarcity is expected to resolve in the coming days.
Regarding NNPCL’s financial standing with international suppliers, Segun affirmed that the company has a strong track record, having never defaulted on its debts and maintaining the confidence of industry marketers.
