Rita Odafe
The Nigerian National Petroleum Company Limited (NNPCL) has delivered 30 million barrels of crude oil to the Dangote refinery. Adedapo Segun, the Executive Vice President of NNPCL Downstream, shared this news on Arise Television and mentioned plans to supply an additional 17 million barrels to the refinery soon.
Segun revealed that 6.3 million barrels of crude will be provided in September followed by 11.3 million barrels in October. This initiative aligns with the Federal Government’s strategy to supply crude to local refineries, with the 6.3 million barrels scheduled for delivery in seven cargo shipments.
“The current fuel pump price does not reflect market conditions. NNPCL remains the exclusive importer of Premium Motor Spirit (PMS) in the nation, which is an anomaly. A shift towards allowing the free market to determine prices is essential,” he emphasized.
Segun clarified that NNPCL’s role as the solitary petrol importer was not intentional but a response to market dynamics.
“Let me clarify, NNPC is not a regulating body. Being the exclusive importer was not our choice, but a necessity due to market shifts. We entered when others decreased their involvement, not with the intention of monopolizing the industry,” Segun explained.
He highlighted that establishing a consistent fuel supply and pricing structure necessitates favorable market conditions, including a more robust foreign exchange system.
“For an optimal fuel pricing system, market conditions need to be favorable with sufficient FX liquidity,” he suggested, hinting at the requirement for broader economic adjustments to confront the fuel pricing challenge.
