NNPCL blames petrol price hike on Forex, market forces

The Nigerian National Petroleum Company Limited said the recent hike in the pump price of Premium Motor Spirit (Petrol) was influenced by Foreign Exchange and unrestricted free market forces.




According to a statement by NNPCL spokesperson, Olufemi Soneye, the Executive Vice President of Downstream of the Company, Adedapo Segun disclosed this while speaking on TVC News’ “Journalists’ Hangout” show on Thursday,




His comments come as Nigerians groan over the latest price petrol hike by NNPCL retail outlets to N855 and N897 from N617, while the product scarcity persists.




Reacting, Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”






He stressed that Section 205 of the Petroleum Industry Act, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.




According to him, “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.”




Meanwhile, the recent fuel has been rejected by the Nigeria Labour Congress, and the Trade Union Congress, which called for its immediate reversal.