NNPC advocates for market-based petrol pricing to end fuel queues
The Nigerian National Petroleum Company Limited (NNPC) has called for the adoption of unrestricted free market pricing of Premium Motor Spirit (PMS) to permanently eliminate fuel queues in the country.
According to Adedapo Segun, Executive Vice President Downstream of NNPC, market-based pricing will foster competition among marketers, improving the quality of service and eliminating the feeling of entitlement.
Segun acknowledged that the current price of N897 per liter is still subsidized by the government, despite the recent price increase. He explained that the continuous increase in petrol pump price is a result of the government’s accumulated N7 trillion debt from shortfall payments to subsidize petrol, describing it as a “zero-sum game”.
Addressing the issue of scarcity, Segun assured that NNPC is working tirelessly to resolve the issue, collaborating with marketers to ensure fuel stations open early and close late, and preventing diversions.
He also acknowledged financial constraints affecting supply, but ensured that NNPC has a good relationship with suppliers and is making payments despite FX illiquidity challenges.
Segun acknowledged the debt, but ensured that NNPC has never defaulted on payments, maintaining supplier confidence. The upcoming Dangote Refinery production will provide an additional source of supply, easing the situation.
