Chrys
Mele Kyari, the group chief executive officer of the
Nigerian National Petroleum Company (NNPC) Limited, has blamed market forces for the increase in
petrol pump price from N540 to N617 per litre.
The product’s pump price had gone up to N617 per litre in
the federal capital territory (FCT) and N568 a litre in Lagos.
Speaking with state house correspondents on Tuesday after a
meeting with Vice President Kashim Shettima at the Aso Villa, Kyari said the
increase is not based on a shortfall in supply of petrol.
“There are just prices depending on the market realities.
This is the meaning of making sure that the market regulates itself. Prices
will go up and sometimes they will come down also,” he said.
“No, there is no
supply issue. It is not a supply issue.
“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.
“We have robust
supply. We’ve had over 32 days of supply in the country. That’s not a problem.”
On his part, Farouk
Ahmed, chief executive officer (CEO), Nigerian Midstream and Downstream
Petroleum Regulatory Authority (NMDPRA), said the price hike was as a result of
rising crude prices.
He also attributed the increase to changes in freight rates
as well as other ancillary expenses importers incur during distribution.
“So when you say market forces are working, basically what
it is, is that you can see the price of crude going up,” he said.
“A week or so ago,
the price of crude was hovering around $70 per barrel. Now, it’s over $80 per
barrel. So, of course, the crude prices also drive the product price.
“As the importers are
importing, they base it on the cost of importation plus the freight plus other
costs elements in terms of local distribution.”
In his inaugural address on May 29, President Bola Tinubu
pronounced that the petrol subsidy is gone.
Subsequently, NNPC increased the price of petrol at its
retail outlets to N537 per litre in Abuja and N488 in Lagos.
