Real Reason Fuel Prices Increased-NNPCL Finally Reveals

When you go to the market, you buy the product; you come to the market, you sell it at the prevailing market prices. Nothing to do with supply. We don’t have supply issues…an official said.
Real Reason Fuel Prices Increased-NNPCL Finally Reveals
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Real Reason Fuel Prices Increased-NNPCL Finally Reveals

The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday attributed the rise in the petroleum pump prices in the country to ‘market forces’.

The NNPCL Group Chief Executive Officer, Mele Kyari, disclosed this while speaking to journalists after a closed-door meeting with Vice President Kashim Shettima at the State House in Abuja.

Mr Kyari said with the deregulation of the oil sector, market realities will force the price of petrol up sometimes and at other times force it down.

“We have the marketing wing of our company. They adjust prices depending on the market realities.

“This is really what is happening; this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also. This is what we have seen, and in reality, this is what (how) the market works,” he said.

He explained that there is no supply issue as there are enough petroleum products for onward distribution across the country.

“When you go to the market, you buy the product; you come to the market, you sell it at the prevailing market prices. Nothing to do with supply. We don’t have supply issues. There is a robust supply. We have over 32 days of supply in the country,” he said.

“Yes, what I know is that the market forces will regulate the market.

“Prices will go down sometimes; sometimes, it will go up. But there will be stability of supply, and I’m also assuring Nigerians that this is the best way to go forward so that we can adjust prices when market forces come to play.

“I don’t have the details at this moment, but I know that our marketing wing acts just like every other company in this business. I know that a number of companies have imported petroleum products today. So, many of them are on line.

“I’m sure my colleague would confirm this. Market forces have started to play; people have started having confidence in the market. Private sector people are importing products, but there is no way they can recover their cost if they cannot take market reflective cost.”

Crude oil effect

Also speaking, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, attributed the rise in price to the global crude oil price increase.

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