The Executive Vice President (EVP) Downstream of the Nigerian National Petroleum Company Limited, Adedapo Segun, has said that Nigeria should move toward market-based petrol pricing.

This, he said is to permanently eliminate fuel queues, even as he acknowledged that NNPC’s current price of N897 per litre is still being subsidised by government.

Segun said this in an interview with ARISE NEWS on Thursday, explaining that the most sustainable option for Nigeria is the unrestricted free market pricing of PMS.

On Tuesday, the NNPC raised the price of PMS from its former prices of between N568-N617 per litre to between N855- N897 per litre.

Addressing the hike, the EVP said, “If you look in section 205 of the PIA, that’s the Act that gave birth to NNPC Limited, it tells you that petroleum prices or fuel prices were based on unrestricted free market conditions. And so, when you have a situation where fuel prices remain the same, that’s what is unusual You won’t see that in other climes, where you have prices fixed for a long period.

“It’s actually supposed to move in consonance with changes and market conditions. During the summer months, prices are high because it’s a driving season, in the winter months, prices come down and things like that. So, that’s what the PIA provides for, prices should move with the seasons.”

Segun then acknowledged that while Nigeria was seeing petrol pump price hikes, other countries were getting reductions. However, he said, “You expect to see prices drop in those climes where petrol prices are market based, but the opposite is our situation, we’re not at our full market pricing of PMS yet, and that’s why the behaviour of PMS pricing in Nigeria cannot be compared to those markets where the prices are fully market based. And if you’re going to do a comparison, you want to check out the equivalent of those prices that you see in those climes, and compare them to the prices here. You’ll find out that they’re still way higher than the prices we’re offering when you bring them to common currency.”

He then said, “It should be free market, unrestricted market-based conditions…what’s sustainable is the unrestricted free market pricing of PMS. That way, competition takes over, and Nigerians will get the best.

“Everyone will compete for market share, and the quality of service will improve. That feeling of entitlement by marketers or companies in the business will go away because they will compete against each other to serve consumers better.”