Market forces driving up fuel price, to sell 568-617 – Kyari

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has attributed  the  increase in petrol pump price from N540 to N617 per litre to the market forces.

The NNPCL Chief who spoke  with Correspondents on Tuesday after a meeting with Vice President Kashim Shettima at the Presidential Villa Abuja, said  that the increase is not based on a short supply of petrol. ⁣

 Kyari’s response comes hours after some stations operated by the NNPCL increased the pump price of Premium Motor Spirit, popularly called petrol, from N537/litre to N617/litre in Abuja.⁣

Kyari said the marketing team of the NNPCL is responsible for price adjustment and that the team “adjust prices depending on market realities”.

He said, “This is really what is happening; this is making sure that the market regulates itself so that the prices will go up and sometimes, it will come down also.”

Kyari assured Nigerians that the country is not in short supply of the essential commodity, adding that the rising price of petrol has nothing to do with supply difficulties.

“There is no supply issue; when you go to the market, you buy the product, you come to the market and sell it at the prevailing market prices, nothing to do with supply issues.

“We have robust supply; we have over 32 days of supply within the country,” he said.

On his message to Nigerians lamenting the skyrocketing price of petrol, the NNPCL boss said allowing market realities to determine the price of fuel is the way to go.

“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. I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when prices go up,” he said.

On his part, the Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, said the price increase stems from rising crude prices. ⁣

He also cited changes in freight prices alongside other ancillary costs importers incur during distribution.

There seemed to be no respite for Nigerians after President Bola Tinubu announced the removal of petrol subsidy in his inaugural speech on May 29, 2023.

With the announcement, the pump price of a litre of petrol rose from N184 to N500. About two months later, the price jumped from N500 to over N617, eliciting anger and criticisms from economically stranded citizens.

The rising fuel prices come amid the unification of the foreign exchange rates by the Tinubu administration as well as rising inflation rates which the National Bureau of Statistics said rose to 22.79% in June from the 22.41% recorded in May 2023.

The report also showed that food inflation spiked to 25.25% on a year-on-year basis which is higher than the 20.60% recorded in June 2022.

Meanwhile, the NMDPRA has said that oil marketers have commenced the importation of petrol.

The Tinubu-led government said it planned to disburse N500 billion as palliative to cushion the effect of the skyrocketing fuel prices and food inflation. The government planned to give N8,000 to 12 million households within six months, a move that has been rejected by the Organised Labour and rights activists.