‘Petrol Prices Will Go Up And Down’—–NNPC GCEO Says New Pump Price Driven By Market Forces

The increase in petrol pump price from N540 to N617 and N620 per litre was caused by market forces, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr. Mele Kyari has said .

Kyari said this during a chat with State House Correspondents on Tuesday shortly after a meeting with the Vice President, Kashim Shettima, at the Presidential Villa Abuja.

Kyari’s was reacting to the increase in pump price of Premium Motor Spirit, from N537/litre to N617/litre as reflected by oil marketere including the NNPC.

He explained that the increase was not due to shortage in the supply of the product.

According to him, the current price reflected the market realities as the price of the product could either increase or decrease.

He said, “We have the marketing wing of our company. They adjust prices depending on the market realities. This is really what is happening; this is the meaning of making sure that market regulate 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 the market works.

“There is no supply issue completely. When you go to the market, you buy the product; you come to the market you sell it the prevailing market prices. Nothing to do with supply. We don’t have supply issues. There is robust supply. We have over 32 days of supply in the country

“There is no supply issue completely. When you go to the market, you buy the product; you come to the market you sell it the prevailing market prices. Nothing to do with supply. We don’t have supply issues. There is robust supply. We have over 32 days of supply in the country

“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 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. “