NNPCL Official Warns of Impending Grave Fuel Scarcity, Calls for Market Reform
Adedapo Segun, Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), has warned Nigerians to prepare for further fuel scarcity following the recent hike in pump prices. Speaking on Arise Television’s Morning Show on Thursday, Segun emphasized the need for a perfectly competitive market to ensure stable fuel prices and supply in Nigeria.
Segun expressed concerns that the current pump price does not accurately reflect market conditions, 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.”
Segun clarified that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company, but rather a response to market conditions. “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,” he explained.
To achieve stable fuel supply and price, “Market conditions need to be perfect, and there must be FX liquidity,” he added. He suggested that broader economic reforms may be necessary to address the fuel pricing issue.
NNPCL has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for refining. “We have supplied about 30 million barrels to Dangote so far. Six-point-three million this month, and we will supply 11.3 million in October,” Segun revealed.
