Hope of many Nigerians for buying Premium Motor Sprit, PMS, popularly known as petrol may not be possible for now. Thereby suggesting more ques on the fuel stations across the country.
Speaking with top executives of the Nigerian National Petroleum Corporation Limited, NNPC Ltd., in Lagos, the NNPCL executive said there is need for a perfectly competitive market to ensure stable fuel prices and supplies in Nigeria.
He expressed concern that the current pump price does not accurately reflect prevailing market conditions.
“The pump price today is not market reflective. NNPCL is the sole importer of PMS in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” he said, stressing that market forces, rather than any single entity, should dictate fuel prices.
Segun clarified that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a deliberate choice by the company but a response to market conditions.
“Let me put it in the proper context. NNPCL is not a regulator. We didn’t choose to be the sole importer. We don’t determine who plays in the market. We stepped in when others reduced their participation. It’s not about wanting to be monopolists,” he explained.
He also stated that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.
“Market conditions need to be perfect, and there must be FX liquidity,” he added, suggesting that broader economic reforms may be necessary to address the fuel pricing issue.
NNPCL has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for refining.
“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” Segun revealed
In Kwara State, Tricycle Operators, shut down Ilorin city in protest over fuel price hike..
In Lagos, ciizen treck for a long distance when transporters, commercial operators incnrease fare by 200 percent.
The Nigeria Labour Congress (NLC) on Tuesday demanded an immediate reversal of the hike in fuel price announced by the Nigerian National Petroleum Company Limited (NNPCL), saying the hike has worsened the misery of Nigerians.
Amid the lingering fuel scarcity in the country, the NNPCL increased the pump price of petrol from ₦568 to ₦855, ₦897 (depending on the location per litre).
Condemning the move in a statement, NLC President, Joe Ajaero, accused the Federal Government of betraying labour movement.
Ajaero said, “We demand the immediate reversal of the latest increase in the pump of PMS across the country, release of all those incarcerated or being prosecuted on the assumption of having participated in the recent protests.
“Halt the indiscriminate arrest and detention of citizens on trumped up charges, reversal of the 250% tariff hike in electricity, stop to the hijack of the duties of the Ministry of Labour and Employment.
“End to policies that engender hunger and insecurity, Halt to government’s culture of terror, fear and lying. We are guided by our belief in our country and the need to secure and sustain its sovereignty, integrity and welfare of the people.”
Traumatic policies
According to the NLC President, the current administration is yet to implement the new national minimum wage of N70,000.
While accusing the government of insincerity, Ajaero described the policies of the current administration as traumatic.
He recalled how President Bola Tinubu gave labour leaders the option of choosing from N250,000 as the new minimum wage in exchange of petrol price at N1,500, and said they rejected the offer due to the impact it would have on Nigerians.
“But here we are, barely one month after and with the government yet to commence payment of the new national minimum wage, confronted by a reality we cannot explain. It is both traumatic and nightmarish.
“Yet, when we told the government that it’s approach to resolving the fuel subsidy contradictions was patently faulty and would not last, it’s front-row cheer leaders sneered at us, saying we did not understand basic economics.
“But if truth be told, this act of betrayal is consistent with the character of this government. We recall the assurances we were given by the leadership of the National Assembly on the 250% tariff hike, that it had been dealt with and there was no need to openly engage the Minister of Power who was at that meeting,” he said.
Ajaero regretted that instead of the promised reversal, “the rate has since been jerked up further putting more Nigerians and businesses in jeopardy.”
