Prepare For More Fuel Price Hike, NNPCL Warns Nigerians

The Nigerian National Petroleum Company Limited (NNPCL) has issued a warning to Nigerians, urging them to prepare for more fuel price hike given what a senior official claims as the continuing subsidy in the current price that was recently raised to N855.

Adedapo Segun, Executive Vice President of NNPCL (Downstream), made this known during a televised interview on Thursday, highlighting the potential for worsening fuel shortages across the country.

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.”

Segun then acknowledged 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.

“Everyone will compete for market share, and the quality of service will improve. That feeling of entitlement by marketers or companies in the business will go away because they will compete against each other to serve consumers better.”

Watch him speak in the video below;

Segun’s warning follows closely on the heels of the recent fuel price hike, which has already compounded the economic hardship faced by many Nigerians. He emphasized that a more competitive and regulated market is essential for stabilizing fuel prices and ensuring consistent supply in the future.

As the fuel crisis deepens, Nigerians may need to prepare for further challenges in accessing petrol. The NNPCL executive stressed the importance of creating a well-regulated market that would drive efficiency in fuel distribution and prevent the recurrence of such shortages.

More details are expected to follow as the situation develops.
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