Adedapo Segun, Vice President of the Nigerian National Petroleum Company’s downstream division, has said that the present gas pump price is not indicative of the market and may even be higher.
In an appearance on Arise TV’s morning show, he made this claim and discussed the issues the business is having with the availability of gasoline.
He claims that even with the increase in gas prices from N617 to N897 per litre, free market conditions are not reflected in them.
He said, “You’ll recall that I said earlier that in the summer months prices are high and as we move towards the winter months, prices drop. So you expect to see prices drop in those climes where petrol prices are market based but the opposite is our situation.”
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“We are not at our full market pricing of PMS yet and that is why the behaviour of PMS prices in Nigeria cannot be compared to those markets where the prices are fully market based. And if you are going to do a comparison, you’ll check out the equivalent of those prices you see in those climes and compare them to the prices here and you’ll see they are way higher than the prices we are offering when you bring them to a common currency”
Furthermore. Mr. Adedapo Segun noted that the Petroleum Industry Act (PIA) provides for a free-market petrol pricing system where different players can source the product and sell at market-based prices which he noted will bring competition to the industry and quality services to Nigerians.
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He also stated that the exchange rate was impeding on the operations of the NNPCL with the company experiencing challenges with foreign exchange liquidity but assured that the current petrol scarcity will fizzle out in the next few days.
On the NNPCL debt to international market suppliers, the Vice President downstream stated that the company has never defaulted on its debt in the past and has the confidence of marketers in the industry.
