Dangote’s Petrol to Flood Market From Sept 15 – NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), commonly known as Petrol from the Dangote Refinery will begin to flood the market from September 15, 2024.

This new development follows the refinery’s commencement of petrol refining earlier in the week.

In a statement signed by the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja, the company clarified that petrol prices would now be determined by market forces.

The statement addressed assumptions regarding price control, reiterating that the downstream sector had been fully deregulated and that NNPCL would no longer fix fuel prices.

“The Nigerian National Petroleum Company Limited (NNPC Ltd) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA)” the statement read in part.

Quoting NNPCL’s Executive Vice President of Downstream, Adedapo Segun, Soneye noted that the current fuel scarcity should ease within a few days as more “filling stations recalibrate their system and resume selling PMS”.

He stated that section 205 of the PIA, which established NNPCL, specified 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”, said Segun. “Additionally, the exchange rate plays a significant role in influencing these prices.”

As for the supply of petrol from the Dangote refinery, Segun said the NNPCL was preparing for the September 15 timeline when products would be available for distribution.

He also assured Nigerians that they are also “engaging relevant authorities to ensure product 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.

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