Executive Vice President Adedapo Segun Urges Shift to Free Market for Stability
Adedapo Segun, Executive Vice President of the Nigerian National Petroleum Company Limited (NNPCL) Downstream, has warned that the scarcity of Premium Motor Spirit (PMS), commonly known as petrol, is likely to worsen in the coming months. His remarks follow the recent surge in petrol prices across Nigeria.
On Tuesday, petrol prices increased significantly from N568-N617 per litre to between N855 and N897 per litre, depending on the location. This price adjustment, implemented across NNPC filling stations, has sparked a widespread impact, with many Nigerians resorting to long-distance walking or missing work due to the sharp rise in transportation costs.
Speaking on Arise Television on Thursday, Segun stressed the importance of establishing a competitive free market to stabilize fuel prices and ensure consistent supply. He explained that the current pump prices are not reflective of market dynamics and highlighted the unusual situation of NNPCL being the sole importer of PMS in the country.
“The pump price today is not market reflective. NNPCL is the sole importer of PMS in the country, which is abnormal,” Segun said. “We should be moving towards a situation where the free market determines prices.”
Segun clarified that NNPCL did not deliberately position itself as the exclusive importer of petrol but stepped in due to prevailing market conditions, particularly challenges related to foreign exchange (FX) liquidity. He emphasized that NNPCL would step back once other suppliers are able to meet market demands.
“NNPCL is not a regulator. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the regulator for the sector,” Segun explained. “We come in when others are unable to supply. FX liquidity is a major reason. It’s not about wanting to be monopolists. We will stop doing that as soon as others are able to supply.”
Segun’s comments highlight the urgent need for market reforms to address the growing fuel scarcity and stabilize prices for Nigerian consumers.
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