The Nigerian National Petroleum Company Limited (NNPC) has clarified that the cost of petrol from the Dangote Refinery will be influenced by foreign exchange rates and market dynamics. This announcement comes in the context of the deregulated fuel market in Nigeria.
NNPC is scheduled to commence the supply of petrol from the Dangote Refinery on September 15. The company emphasized that foreign exchange illiquidity has been a major factor contributing to fluctuations in petrol prices, which are now governed by unrestricted free market forces as outlined in the Petroleum Industry Act (PIA).
Adedapo Segun, Executive Vice President of Downstream at NNPC, explained during a television interview that the current fuel scarcity is expected to ease within a few days as more filling stations recalibrate and resume selling petrol.
He referenced Section 205 of the PIA, which mandates that petroleum prices be determined by unrestricted market forces. Segun reiterated that the market has been deregulated, meaning prices are no longer set by the government or NNPC but rather by market dynamics and exchange rate fluctuations.
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