NNPCL Cites Market Forces and Forex as Reasons for Recent Petrol Price Hike

The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent increase in the pump price of Premium Motor Spirit (Petrol) to free market forces and foreign exchange rates.

During a Thursday appearance on TVC News' "Journalists' Hangout," Adedapo Segun, the Executive Vice President of NNPCL's Downstream sector, made this revelation. His comments come amid ongoing fuel shortages and the recent hike in petrol prices at NNPCL retail outlets to N855 and N897, up from N617, which has sparked public outcry.

Segun noted that the current fuel scarcity is expected to "subside in a few days as more stations recalibrate and begin selling PMS." He explained that the pricing of petroleum products is guided by the Petroleum Industry Act, Section 205, which mandates that prices are determined by unfettered 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 stated.

Meanwhile, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have condemned the latest increase in petrol prices and have called for an immediate reversal.