The Nigerian National Petroleum Corporation Limited (NNPC Ltd) has reiterated that the pricing of petrol in Nigeria is now determined by free market forces. This statement was made by the NNPC Ltd management amidst the ongoing discussions and concerns over the recent hikes in petrol prices across the country.
According to NNPC Ltd, the deregulation of the downstream sector has shifted the determination of petrol prices away from government control to the dynamics of supply and demand in the open market. The company emphasized that the current pricing model is aimed at fostering competition, ensuring efficiency, and attracting investments to the sector.
“Petrol prices are no longer set by the government. They are determined by the market forces of demand and supply. This deregulation policy is meant to encourage private sector participation and bring stability and transparency to the market,” a statement from NNPC Ltd read.
The NNPC Ltd explained that the recent increase in petrol prices is a direct reflection of the rising international crude oil prices, fluctuations in foreign exchange rates, and other economic variables impacting the global oil market. The organization highlighted that as a result, prices at the pump will vary depending on the location and the cost structure of each marketer.
While addressing public concerns, NNPC Ltd urged Nigerians to embrace the realities of a deregulated market, noting that deregulation will ultimately lead to greater competition and, potentially, more competitive pricing in the long run. The company also emphasized that the new policy allows marketers to source their foreign exchange independently, which has implications for pricing.
The deregulation move has been met with mixed reactions from the public and stakeholders. While some welcome the transparency and potential for market-driven prices to bring about efficiency, others express concerns over the affordability and accessibility of petrol, especially in the context of the current economic challenges facing Nigerians.
The statement from NNPC Ltd comes at a time when fuel prices in Nigeria have become a major point of discussion, with the recent hike pushing the price per liter to levels that have sparked public outcry and debates about the cost of living.
As the market adjusts to this new reality, NNPC Ltd assures that it will continue to ensure adequate supply and distribution of petrol nationwide, working with relevant stakeholders to mitigate any potential challenges and ensure that the Nigerian market remains stable.
