THE Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, says market forces are responsible for the rising pump price of premium motor spirit (PMS), otherwise known as petrol.
Kyari spoke on Tuesday, July 18, after a meeting with Vice President Kashim Shettima at Aso Rock, Abuja.
Nigerians woke up today shocked by the NNPCL with an upward price adjustment of petrol across the country.
But Kyari had said the same market realities that forced the price up could also force it down any time.
The NNPCL boss maintained the price hike was not a supply issue, while assuring Nigerians that the country had a robust supply of the vital commodity for, at least, a month.
He explained that the marketing team of the NNPCL had the responsibility of price adjustment, and the team “adjusts prices depending on market realities.”
Kyari said, “This is really what is happening. This is making sure that the market regulates itself so that prices will go up and sometimes, it will come down also.
“There is no supply issue. When you go to the market, you buy the product. You come to the market and sell it at the prevailing market prices. It’s nothing to do with supply issues.”
He told Nigerians lamenting the skyrocketing price that allowing market realities to determine the price of petrol was the only way to go.
Also, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, who addressed reporters after Kyari, corroborated the NNPCL boss’ position on market forces.
Ahmed disclosed that out of the 56 marketers that applied for licensing, 10 had demonstrated commitment, and three had commenced importation, while seven others would be ready to commence importation next month.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.