Adedapo Segun, Executive Vice President of the Nigerian National Petroleum Company Limited (NNPCL), has warned Nigerians to expect continued fuel shortages following a recent increase in fuel prices.
On Tuesday, NNPC adjusted the price of petrol to ₦855 per litre at its filling stations, significantly affecting consumers across the country.
In an interview on Arise Television’s Morning Show on Thursday, Segun stressed the need for a competitive market to stabilize fuel prices and ensure a consistent supply. He noted that the current pump price does not reflect market conditions and criticized the NNPCL’s role as the sole importer of Premium Motor Spirit (PMS), calling it an anomaly.
Segun explained that NNPCL’s exclusive role in fuel importation was not intentional but a response to changing market dynamics. “NNPCL is not a regulator and did not choose to be the only importer. We stepped in when other players reduced their involvement,” Segun said. He emphasized that the company’s role emerged due to a lack of participation from other market players, not from a desire to monopolize.
To address the issue of fuel price stability, Segun highlighted the need for optimal market conditions and adequate foreign exchange liquidity. “Market conditions need to be ideal, and there must be sufficient FX liquidity,” he stated, suggesting that broader economic reforms may be necessary to improve market conditions and competition.
The ongoing fuel scarcity is attributed to NNPCL’s difficulties in managing fuel imports and debts to suppliers. Experts have called for more strategic borrowing by NNPCL to mitigate supply disruptions and avoid further fuel shortages.
The recent surge in fuel prices has exacerbated the cost of living for many Nigerians, raising concerns about increased transportation costs and the impact on the prices of goods and services.
