Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, has attributed the increase in petrol pump price from N540 to N617 per litre to market forces. During a meeting with Vice President Kashim Shettima at the Presidential Villa Abuja, Kyari clarified that the price hike is not due to a shortage of petrol.
He emphasized that these prices are determined by market realities and the concept of self-regulation in the market. Prices can fluctuate both upwards and downwards. He reassured that there is no supply issue, as the country has an ample and robust supply of petrol, with over 32 days of supply available.
Kyari’s response came shortly after the pump price of Premium Motor Spirit (petrol) increased from N537 to N617 per litre at NNPCL maga stations in Abuja. Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, supported Kyari’s explanation, stating that the price increase is influenced by rising crude oil prices, as well as changes in freight prices and other related costs incurred during distribution.
Independent oil marketers confirmed the price increase, stating that any adjustment in prices at NNPCL stations indicates a rise in the pump price of petrol. It is worth noting that President Bola Tinubu announced the removal of fuel subsidy in his inaugural address on May 29, which led to a significant jump in the price of petrol from N198 per litre to over N500 per litre on May 30, 2023.