The Nigerian National Petroleum Company Limited (NNPCL) has warned Nigerians to prepare for more fuel scarcity.
The warning was given by Adedapo Segun, Executive Vice President of NNPCL (Downstream), during an interview on Arise TV on Thursday.
Segun’s warning comes on the heels of the recent fuel price hike, which has already caused widespread hardship across the country.
The NNPCL executive said there is need for a perfectly competitive market to ensure stable fuel prices and supplies in Nigeria.
Addressing the hike, the EVP said, “If you look in section 205 of the PIA, that’s the Act that gave birth to NNPC Limited, it tells you that petroleum prices or fuel prices were based on unrestricted free market conditions. And so, when you have a situation where fuel prices remain the same, that’s what is unusual You won’t see that in other climes, where you have prices fixed for a long period.
“It’s actually supposed to move in consonance with changes and market conditions. During the summer months, prices are high because it’s a driving season, in the winter months, prices come down and things like that. So, that’s what the PIA provides for, prices should move with the seasons.”
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Segunacknowledged that while Nigeria was seeing petrol pump price hikes, other countries were getting reductions. However, he said, “You expect to see prices drop in those climes where petrol prices are market based, but the opposite is our situation, we’re not at our full market pricing of PMS yet, and that’s why the behaviour of PMS pricing in Nigeria cannot be compared to those markets where the prices are fully market based.
“And if you’re going to do a comparison, you want to check out the equivalent of those prices that you see in those climes, and compare them to the prices here. You’ll find out that they’re still way higher than the prices we’re offering when you bring them to common currency.”
He then said, “It should be free market, unrestricted market-based conditions…what’s sustainable is the unrestricted free market pricing of PMS. That way, competition takes over, and Nigerians will get the best.
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