The Nigerian National Petroleum Company (NNPC) Limited has revealed that petrol from the Dangote Refinery will hit the market in abundance from September 15, 2024.
NNPC’s announcement comes after the refinery commenced petrol refining earlier in the week.
According to NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the company will no longer fix prices, and the downstream sector has been fully deregulated.
This puts to rest speculations that NNPC would continue to control prices despite the announcement of deregulation.
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NNPC’s Executive Vice President of Downstream, Adedapo Segun, stated that the current fuel scarcity is expected to subside soon as more stations recalibrate and begin selling PMS.
Segun explained that the market has been deregulated, and petrol prices are now determined by market forces, not the government or NNPC Ltd.
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He also mentioned that the exchange rate plays an important role in influencing prices and assured Nigerians that the company is working to ensure adequate fuel supply and prevent product diversions.
Checks indicated that the NNPC has supplied 30 million barrels of crude oil to the Dangote refinery so far, with plans to supply an additional 17 million barrels soon. The company aims to deliver 6.3 million barrels in September and 11.3 million barrels in October.
However, Segun revealed that the current pump price of petrol does not reflect market realities. He stressed that market forces should drive fuel prices, rather than any single entity.
On NNPC’s role as the sole importer of petrol, Segun clarified that it was not a deliberate decision but a response to market conditions.
According to him, achieving a stable fuel supply and price requires perfect market conditions, including a more liquid foreign exchange market.
Once the Dangote refinery begins rolling out PMS, and NNPC commences lifting, the company will communicate the details, Segun added.
