According to the Nigerian National Petroleum Company Limited (NNPC Ltd), one of the main factors affecting the volatility of Premium Motor Spirit (PMS) prices—which are set by the Petroleum Industry Act (PIA) and are subject to unfettered free market forces—has been the lack of liquidity in foreign exchange (forex).

The Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun, stated on Thursday’s “Journalists’ Hangout” show on TVC News that the current fuel shortage is anticipated to “subside in a few days as more stations recalibrate and begin selling PMS.”

According to him, unfettered free market forces set petroleum prices, as stated in Section 205 of the PIA, which created NNPC Ltd.

“Market forces now determine gasoline prices instead of the government or NNPC Ltd.,” he claims, citing the deregulation of the industry. Furthermore, a major factor influencing these prices is the exchange rate.

Segun announced that the NNPC Ltd. was awaiting the refinery’s September 15th timeline prior to initiating the lifting of PMS from the Dangote Refinery.

A rational person would not put up with the current fuel shortage, according to Segun, who also stated that the NNPC Ltd. operated almost a thousand filling stations across the country and worked with marketers to “make sure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”

In order to ensure that product diversions are avoided and prompt deliveries to all stations are guaranteed, he gave Nigerians assurances, saying, “We are also engaging relevant authorities.” When additional stations recalibrate and start up, the shortage should subside over the next few days.