The Group Chief Executive Officer, GCEO, Nigerian National Petroleum Company, NNPC Limited, Mele Kyari 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 stressed that the market regulates itself, resulting in fluctuating prices.
“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”, he said.
The CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed also highlighted the impact of rising global crude oil prices and various expenses faced by importers during the distribution process.
“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”, he said.
Recall that the Nigerian National Petroleum Company Limited, NNPCL, increased the pump price of petrol, known as Premium Motor Spirit, PMS, from N537 to N617 per litre in May.
The latest increase is the second in less than two months, following the removal of fuel subsidy by the federal government.
NNPC filling stations in Abuja have already implemented the new price, with other stations expected to follow suit.
In the first half of 2023 alone, Nigeria spent N3.6 trillion on fuel subsidy. The Federal Government estimates that discontinuing fuel subsidy payments would save the country close to N6.7 trillion.
According to the Nigeria Extractive Industries Transparency Initiative, Nigeria has spent a staggering N13.7 trillion on fuel subsidy in the past 13 years.
