…By Dorcas Funmi for TDPel Media. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, has stated that the recent hike in petrol pump prices, from N540 to N617 per litre, is a result of market forces.
Kyari provided this explanation after a meeting with Vice President Kashim Shettima at the Aso Villa.
He reassured reporters that the price increase is not due to a shortage of petrol.
Market-Driven Price Adjustment:
Kyari emphasized that when petrol is purchased in the market, it is sold at the prevailing market price.
He stated that the price increase has no connection to supply issues, as there is an ample and steady supply of petrol in the country.
He mentioned that Nigeria has experienced over 32 days of petrol supply, indicating an absence of supply problems.
Confidence in the Market:
The NNPC CEO assured Nigerians that adjusting prices based on market forces is the appropriate approach.
He acknowledged that he did not have specific details at that moment but emphasized that the NNPC’s marketing wing operates similarly to other companies in the industry.
He also mentioned that several companies have imported petroleum products and are operating in the market.
According to Kyari, market forces are now at play, leading to increased confidence in the market.
Private sector entities are importing products, but they need to recover their costs by setting prices that reflect market realities.
Conclusion:
Mele Kyari, the CEO of NNPC, attributes the recent rise in petrol prices to market forces.
He assures the public that the increase is not a result of petrol shortages, as there is an adequate and consistent supply of petrol in the country.
Kyari emphasizes the need to adjust prices based on market dynamics and highlights the presence of private sector companies importing petroleum products.
He states that these companies must set prices that cover their costs and reflect the prevailing market conditions.
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