The Nigerian National Petroleum Company (NNPC) has sought to allay the concerns of Nigerians over the persistent fuel scarcity that has led to long queues at filling stations across the country. The NNPC has assured citizens that the situation is expected to improve in the coming days as more filling stations recalibrate their fuel dispensers.
In an interview with TVC News, the Executive Vice President of Downstream at NNPC, Adedapo Segun, attributed the current fuel scarcity to the volatility in the foreign exchange market. He explained that the fluctuations in the exchange rate have impacted the pricing of petrol, leading to challenges in the supply chain.
Additionally, Segun highlighted the time-consuming process of recalibrating fuel dispensers following price adjustments. He emphasized that many filling stations are still in the process of recalibrating their equipment, which has contributed to the limited availability of fuel.
NNPC’s Efforts to Address the Scarcity
The NNPC has taken several steps to address the fuel scarcity and ensure adequate supply. According to Segun, the NNPC is working closely with marketers to encourage them to open early and close late to maximize fuel distribution. The company is also engaging with relevant authorities to prevent product diversions and ensure timely deliveries to all filling stations.
Deregulation and Market Forces
The NNPC has emphasized that the fuel market in Nigeria is now fully deregulated, meaning that prices are determined by market forces rather than government intervention. This aligns with the provisions of the Petroleum Industry Act (PIA), 2021, which establishes the NNPC as a commercial entity.
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The NNPC has acknowledged that the global price of crude oil and the exchange rate play significant roles in influencing petrol prices. However, the company has maintained that it is committed to ensuring a fair and competitive market.
Dangote Refinery and Fuel Supply
The NNPC has also expressed anticipation for the commencement of petrol lifting from the Dangote Refinery. The refinery has indicated that it will start supplying petrol to the market on September 15, 2023. The NNPC expects that the additional supply from the Dangote Refinery will help to alleviate the fuel scarcity and stabilize prices.
If You Ask Me
While the NNPC has assured Nigerians of improved fuel supply in the coming days, the ongoing challenges related to foreign exchange volatility and recalibration processes may continue to impact the availability of petrol. The NNPC’s efforts to work with marketers and address supply chain issues are crucial in ensuring a more stable fuel market.
As the country awaits the contribution of the Dangote Refinery, it is essential for both the government and the private sector to continue working together to address the underlying factors contributing to fuel scarcity and ensure a sustainable and affordable supply of petrol for Nigerian consumers.