The Executive Vice President of the Nigerian National Petroleum Company Limited for Downstream, Adedapo Segun, has highlighted the necessity of a fully competitive market to achieve stable fuel prices and supply in Nigeria.
During his appearance on Arise Television’s Morning Show on Thursday, Segun voiced concerns that the current pump price does not accurately mirror the prevailing market dynamics.
Segun emphasized that the current situation is far from ideal, stating, “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 underscored that fuel prices should be set by market forces rather than being influenced by any single entity.
He clarified that NNPCL’s position as the sole importer of Premium Motor Spirit was not a strategic choice but rather a reaction to the existing 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,” Segun explained.
Segun also pointed out that for fuel prices and supply to stabilize, the market conditions need to be ideal, which includes ensuring liquidity in the foreign exchange market.
“Market conditions need to be perfect, and there must be FX liquidity,” he said, suggesting that broader economic reforms might be needed to address the issues surrounding fuel pricing.
To support a consistent supply of fuel, NNPCL has been collaborating with private refineries, such as Dangote Refinery.
“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,” Segun noted, highlighting ongoing efforts to stabilize the market through strategic partnerships.
