Mele Kyari, Group Chief executive officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, has attributed the recent surge in petrol pump prices, now standing at N617 per litre, to market forces.
Speaking to state house correspondents after a meeting with Vice President Kashim Shettima at the Aso Rock Villa, Kyari clarified that the price adjustment is not due to insufficient petrol supply. He said the market regulates itself, resulting in fluctuating prices.
According to him, “When you go to the market, you buy the product, you come to the market and sell it at its prevailing market price. It has nothing to do with supply. We don’t have supply issues.”
Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), also highlighted the impact of rising global crude oil prices and various expenses faced by importers during the distribution process.
Ahmed explained, “Basically, what we’re seeing is the effect of market forces. You can see that crude oil prices have been on the rise… So naturally, these prices also influence the cost of the product.”
The state-owned oil firm had increased the pump price of petrol, also known as Premium Motor Spirit (PMS), from N537 in May to N617 per litre now. The latest increase is the second in less than two months, following the removal of fuel subsidy by the federal government.
according to various reports, NNPCL filling stations in Abuja have already implemented the new price, with other stations expected to follow suit.