The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), or petrol, from the Dangote Refinery will start entering the market from September 15, 2024. This development follows the refinery’s recent commencement of petrol refining.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed that the prices of petrol will be governed by market forces, as the downstream sector has been fully deregulated. This means that NNPCL will no longer fix petrol prices, contrary to earlier speculations. The deregulation is in line with the Petroleum Industry Act (PIA), which mandates that prices be determined by the free market rather than government or NNPCL intervention.
The statement also highlighted that the current fuel scarcity is expected to ease soon as more filling stations adjust and resume operations. NNPCL is working with marketers to ensure adequate fuel supply and prevent product diversion. The company has already supplied 30 million barrels of crude oil to the Dangote Refinery and plans to supply an additional 17 million barrels in the coming months.
NNPCL emphasized that while it has been the primary importer of petrol due to reduced participation from other market players, this situation is not ideal. The company advocates for a market-driven approach to pricing, supported by a more liquid foreign exchange market to stabilize fuel supply and prices.
