As Nigerians eagerly await the release of Premium Motor Spirit, popular known as petrol, from the $20bn Dangote Petroleum Refinery, the Nigerian National Petroleum Company Limited says it will lift the product from the plant on September 15 but outlined factors that would determine its price.
It said foreign exchange rates and market forces would influence the cost of petrol, stressing that the market had been deregulated.
This came as 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.
