The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent hike in the pump price of Premium Motor Spirit (PMS) to fluctuations in foreign exchange rates and the influence of unrestricted market forces. This explanation comes as Nigerians face escalating petrol prices, with NNPCL retail outlets now selling fuel at N855 to N897 per litre, up from N617.
NNPCL’s Executive Vice President of Downstream, Adedapo Segun, addressed the matter during an interview on TVC News’ “Journalists’ Hangout” on Thursday. He pointed out that the price increase is a direct result of the deregulated market, in line with Section 205 of the Petroleum Industry Act (PIA), which mandates that fuel prices are determined by free market dynamics rather than government intervention.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices,” Segun explained.
While acknowledging the ongoing fuel scarcity, Segun assured the public that the situation would stabilize in the coming days as more filling stations recalibrate their systems and resume PMS sales.
The price hike, however, has been met with strong opposition from labor unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), both of which have called for an immediate reversal, warning of the severe impact on the already struggling populace.
