Why we increased fuel price to N617 per litre – NNPCL

Why we increased fuel price to N617 per litre – NNPCL

The Nigerian National Petroleum Company Ltd. has attributed the increase in the price of Premium Motor Spirit (PMS) also known as petrol to the market realities.

The company’s Group Chief Executive Officer, Malam Mele Kyari, stated this in an interview with newsmen shortly after a private meeting with the Vice President, Kashim Shettima, at the Presidential Villa, on Tuesday in Abuja.

Kyari explained that the increase in the price of PMS has nothing to do with the supply issue, adding that there is a set supply of products online country.

”I don’t have the details at this moment. You know we have the Marketing Wing of the company, they adjust prices depending on the market realities.

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”And 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 and this is really what we are seeing in reality this is how the market works.

”There is no supply issue completely when you go to the market you buy the product you come to the market and sell it at the prevailing market price there is nothing to do with supply we don’t have supply issues.”

”There is robust supply, we have over 32 days supply in the country, and ’s not a problem. What I know is that the market forces will regulate the market, prices will go down sometimes and sometime it will go up but supply will be stable.

He assured Nigerians that the policy was the best way for the country to go forward.

”And I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when the market comes.

”I know that several companies have imported petroleum pms so many of them are online. Market forces have started to play, people have confidence in the market, and private sector people are now importing products

”And there is no way they can recover their cost if they cannot take market reflective cost,” Kyari said.

On his part, Alhaji, Farouk Ahmed, Chief Executive Officer of, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority doesn’t set the of the product but it was market determined itself.

” As a regulator know I told you back in May we are not going to be settpricesrice The market will determine itself and as you saw back in early June when prices came out it was based on the cost of importation plus other logistics of distribution of course prof-profit margin by the importer.

”This market is deregulated and ed is open to all participants.s mentioned latest yesterday (Monday) when I was in Lagos we have about mark marketing companies that have applied for and obtailicensesense to import.

”Out of those 10 of them have indicated to supply within the third quarter which is July, Au, gust, and September. And out of that air, ready we received some cargoes from some of these Marketers.”

Prudent Energy, AYM S,hafa, and Emadeb Caareo is arriving tomorrow (Wednesday), So this is like just an encouragement to see that the market is liberated and everyone is free to import so long you are working within the framework, especially in terms of quality”

He insisted that the authority as a regulator would not put an app on the price because it was not part of those importing the product.

”But the pricing as a regulator we are not going to put the cap on the price because we are not part of those importing, we are not a marketing company, we are just a regulator.

”So when you say market forces are working basically what it means is that you can see the price of the Crude Oil going up, a couple of weeks ago recovering around 70 dollars per barrel now is around 80 dollars per barrel

”So of course the crude price also drive the product price you know because the imposters are importing they are basing it on the course of importation plus other cost element in terms of local distribution.”