Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, (NNPCL), Mele Kyari, has explained that the rise in petrol pump prices in Nigeria is due to market forces.
Recall that it had earlier been reported that the president Bola Tinubu-led federal government has increased the pump price of Petroleum Motor Spirit, popularly known as petrol. The increment followed the adjustment of fuel prices from N539 to N617 by filling stations in the Federal Capital Territory, (FCT) and other parts of the country.
Speaking on the development, Mele Kyari, in an interview with newsmen shortly after a private meeting with the Vice President, Kashim Shettima, at the Presidential Villa in Abuja yesterday, said the increase in fuel price is informed by market forces and realities.
He said, “This is the meaning of making sure that the market regulates itself. Prices will go up and sometimes they will come down also”. However, he debunked notions that the price increase is due to a shortfall in petrol supply, adding that there is enough supply of the product in the country.
On his part, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (MDPRA), Farouk Ahmed, attributed the price hike to global crude oil prices increase.
He also mentioned that changes in freight costs and other miscellaneous expenses that importers encounter during distribution contribute to price changes.
Yesterday’s development was confirmed by independent oil marketers, who noted that price changes by NNPCL typically indicate a rise in the pump price of petrol, given that NNPCL remains the primary petrol importer in Nigeria.
