6th September, 2024
By Ayorinde Oluokun/Abuja
The Federal government and the Nigerian National Petrol Company Limited, NNPCL on Thursday insisted that they will not intervene in the fixing of the price of premium motor spirit, popularly known as petrol contrary to agitations by Nigerians.
The Minister of State (Oil) Petroleum Resources, Heineken Lokpobiri made the view of the Federal Government known after a meeting with Vice President Kashim Shettima at the Aso Rock presidential villa on Thursday.
Shettima summoned Lokpobiri alongside the Group Managing Director of NNPCL, Mele Kyari, and the National Security Adviser, Nuhu Ribadu, over the outrage being generated by the hike in the price of petrol last Monday.
‘Government Not Fixing Prices’
Speaking to journalists after the meeting, the Minister assured that the challenge of the scarcity of the product will be addressed, but said the Federal Government will not intervene in fixing the price of petrol as being demanded by Nigerians.
According to him, the NNPCL Currently has enough stock of petrol in the country to ease the pain of the current scarcity.
He added that the price of the product will be stabilised when the product is available across the country.
“But what is important is that government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find it’s level. And this is important for Nigeria to know,” Lokpobiri said.
“What is important is that products are available in the country,” he said.
“We believe that between now and the weekend, there will be availability of products across the length and breadth of the country.
“The price could be high in some other areas, much more higher in some other locations, and in some locations, much more than you know other areas.
“But we believe that by the time there is availability of products across the country, the price itself is stabilized.
“But what is important is that government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find it’s level. And this is important for Nigeria to know,” Lokpobiri said.
Speaking in the same vein, the Executive Director, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Kalu Okuoha, there are ongoing efforts to stabilise supply of petrol in the country.
He said the efforts would impact positively on stability of price.
“The objective of the regulator is to ensure that there’s increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit truck outs as well.
“More importantly also is the reinforcement of the support being given to local refining, because with increased production there will be higher supply, which will stabilise the price,” said Okuoha.
Price of petrol determined by market forces, forex
The NNPC Ltd. had also in a statement on Thursday said the price of petrol is being determined by market forces as provided for in the Petroleum Industry Act, PIA.
Adedapo Segun, the Executive Vice President, Downstream, NNPC Ltd., in a statement Said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces. “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd.
“Additionally, the exchange rate plays a significant role in influencing these prices,” he said
On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the Sept. 15 timeline provided by the refinery.
Segun said the NNPC Ltd. would supply a total of 17.6 million barrels of crude oil to Dangote Refinery between September and October 2024 as part of the Federal Government’s push to drive local production of petroleum products.
“We have supplied about 30 million barrels of crude oil to Dangote Refinery so far, and this month alone, we will be providing 6.3 million barrels of crude oil to the refinery in seven cargoes.
“In October, we will be providing another 11.3 million barrels of crude oil to Dangote refinery in 13 cargoes. We are doing everything possible to ensure this situation normalises,” he said.
He said that the NNPC Ltd. has about 1,000 fuel stations nationwide and was collaborating with marketers to ensure that stations opened early and close late to maintain adequate fuel supply to meet the needs of Nigerians. “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured.
“The scarcity should ease in the next few days as more stations recalibrate and begin operations,” he said.
There have been calls by Nigerians for the reversal of the increase in price of petrol announced on Sunday by the NNPCL.
The Nigeria Labour Congress and the Trade Union Congress of Nigeria, TUC had in separate statement asked the Federal Government to urgently reverse the price increase.
Economists and analysts had also said the latest price increase will drive more Nigerians into poverty.
NNPC Retail Management had approved an upward review of petrol pump price from N617/litre to N897/litre on Monday.
