The Nigerian National Petroleum Company Limited says that foreign exchange illiquidity has been a significant factor influencing the fluctuation in the prices of petrol.
The company said price is governed by unrestricted free market forces, as provided in the Petroleum Industry Act.
The Executive Vice President of Downstream, NNPC Ltd, Adedapo Segun said fuel scarcity is 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 Ltd, stipulated that unrestricted free market forces will determine petroleum prices.
According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd."
He maintained that the exchange rate plays a significant role in influencing these prices.
On the commencement of lifting PMS from the Dangote Refinery, Segun said that NNPC Ltd is awaiting the September 15th timeline provided by the refinery.
