The Nigerian National Petroleum Company Limited (NNPCL) has announced that petrol, also known as Premium Motor Spirit (PMS), from the Dangote Refinery will begin entering the market on September 15, 2024. This was disclosed in a statement signed by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja. The statement also clarified that the prices of petroleum products would now be dictated by market dynamics.
This follows the recent commencement of refining activities at the Dangote Refinery. NNPCL’s Executive Vice President of Downstream, Adedapo Segun, reiterated that the downstream sector has been fully deregulated, meaning NNPCL will no longer be involved in setting prices. This clarification addresses ongoing speculation that NNPCL would continue to regulate fuel prices despite the deregulation of the sector.
The speculation was further fueled by reports suggesting that NNPCL would be the exclusive distributor of petrol from the Dangote Refinery. However, the company explained that foreign exchange shortages have been a major factor in the fluctuating prices of PMS, which are now determined by free market forces in line with the Petroleum Industry Act (PIA).
Segun noted that the current fuel scarcity should ease within a few days, as more petrol stations recalibrate and resume sales. He highlighted that, under Section 205 of the PIA, the deregulation of the market means that petrol prices are influenced by market conditions, including the exchange rate.
Regarding the Dangote Refinery’s petrol supply, NNPCL is preparing for the expected release on September 15. Segun also emphasized the company's efforts to collaborate with marketers to ensure that fuel stations operate longer hours and meet the nation’s fuel demands. He assured Nigerians that NNPCL is working to prevent product diversions and ensure timely deliveries to stations.
This clarification follows the Federal Government's recent announcement of a substantial petrol supply set to arrive over the weekend, while ruling out any price control on PMS.
