By Jennifer Amarachi
Adedapo Segun, Executive Vice President of Nigerian National Petroleum Company Limited (Downstream), has underlined the need of a totally competitive market in maintaining stable fuel pricing and supplies in Nigeria.
He was concerned that the existing pump price did not correctly represent market conditions. Segun made the statement during an interview on Arise Television’s Morning Show on Thursday.
“The current pump price is not market reflective. NNPCL is the only importer of PMS in the country, which is unusual. We should be working towards a system in which the free market determines prices,” he stated, emphasizing that market forces, not any single entity, should determine fuel costs.
Segun explained that NNPCL’s role as the sole importer of Premium Motor Spirit (petrol) was not a planned decision by the corporation, but rather a response to market realities.
“Let me put it into appropriate context. NNPCL is not a regulator. We did not choose to be the sole importer. We do not decide who plays in the market. We stepped in while others decreased their participation. “It is not about wanting to be monopolists,” he clarified.
He also claimed that maintaining a consistent fuel supply and price would necessitate perfect market conditions, such as a more liquid foreign currency market.
“Market conditions need to be perfect, and there must be FX liquidity,” he added, implying that broader economic reforms may be required to fix the fuel pricing issue.
“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” he said.
