NNPCL Warns Fuel Prices in Nigeria Not Reflecting Market Realities

NNPCL official raises concerns that Nigeria's fuel pump prices are not reflective of market forces, urging a competitive market.

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The Nigerian National Petroleum Company Limited (NNPCL) has raised concerns that the current fuel pump price in the country is not aligned with the true market conditions. 

Adedapo Segun, NNPCL's Executive Vice President (Downstream), stated that the fuel price should be determined by market forces for stability in pricing and supply.

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Segun expressed dissatisfaction with NNPCL being the sole importer of Premium Motor Spirit (PMS) in Nigeria, describing it as an abnormal situation. 

He explained that the company did not seek a monopoly but stepped in when other importers reduced their involvement.

“The pump price is not reflective of the market. NNPCL is not a regulator but took on the role of the sole importer to meet market demands when others withdrew,” 

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Segun said during his appearance on Arise TV’s Morning Show. He emphasized that in a healthy market, price determination should be left to market forces, not a single entity.

Segun further noted that ideal market conditions, including a more liquid foreign exchange market, are essential for ensuring stable fuel prices and supply. 

He added that NNPCL is working with private refineries, including Dangote, to maintain a steady supply of crude oil for refining in Nigeria.

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