The Nigerian National Petroleum Company (NNPC) Limited has noted that exchange rate and market forces would determine the price of petrol produced at the Dangote Refinery.
This as the company plans begin lifting of products from the plant on September 15.
According to the state oil company, foreign exchange rates and market forces would influence the cost of petrol, stressing that the market had been deregulated.
Recall that oil marketers declared on Thursday that about 2,000 tankers were still awaiting to load the product at various depots of the national oil company in Lagos, Warri and Port Harcourt.
Also, the Federal Government declared that there was going to be a massive supply of petrol at the weekend as vessels had started offloading, but ruled out PMS price fixing.
Operators stated that the government might have put an end to petrol subsidy going by its latest position on the pricing of PMS.
NNPC said foreign exchange illiquidity had been a significant factor influencing the fluctuation in prices of petrol, which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act.
The Executive Vice President of Downstream, NNPC, Adedapo Segun, said on Thursday during a live television programme that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He said Section 205 of the PIA, which established NNPC, stipulated that petroleum prices were determined by unrestricted free market forces.
“The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices,” Segun added.
On the commencement of lifting PMS from the Dangote refinery, Segun said NNPC was awaiting the September 15 timeline provided by the refinery, adding that the national oil firm had nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
“We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations,” he stated.
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