The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Limited, Mele Kyari, says market forces are responsible for the rising pump prices of Premium Motor Spirit (PMS) known as petrol.
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.
He said with deregulation of the oil sector, market realities will force the prices of petrol up sometimes and at other times force the prices down.
“We have the marketing wing of our company. They adjust prices depending on the market realities.
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“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 added 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.”
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