Why pump price increased to N617/litre — NNPCL

July 18, 2023
28 Views

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has attributed the rise in petrol pump prices in Nigeria to market forces.

This follows a recent price increase from N540 to N617 per litre, which he said reflects the dynamics of a market-regulated pricing model.

Addressing journalists after a closed-door meeting with Vice President Kashim Shettima at the State House, Abuja, Kyari said, “They are just prices depending on the market realities. This is the meaning of making sure that the market regulates itself. Prices will go up and sometimes they will come down also.”

However, he debunked notions that the price increase is due to a shortfall in petrol supply.

“No, there is no supply issue. It is not a supply issue.

Read Also: ‘Allow Nigerians breathe’, reactions as NNPCL increases petrol pump price to N617

“When you go to the market, you buy the product, you come to the market and sell it at its prevailing market price. It has nothing to do with supply. We don’t have supply issues.

“We have a robust supply. We’ve had over 32 days of supply in the country. That’s not a problem,” he explained.

His comments came after several NPCL-operated stations increased the petrol pump price from N537/ litre to N617 /litre in Abuja.

On his part, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, attributed the price hike to global crude oil prices increase.

He also mentioned that changes in freight costs and other miscellaneous expenses that importers encounter during distribution contribute to price changes.

Ahmed said, “Basically, what we’re seeing is the effect of market forces. You can see that crude oil prices have been on the rise.

Just a week ago, crude oil prices hovered around $70 per barrel, but now it’s surpassed $80 per barrel. So naturally, these prices also influence the cost of the product.’

Tuesday’s development was confirmed by independent oil marketers, who noted that price changes by NPCL typically indicate a rise in the pump price of petrol, given that NPCL remains the primary petrol importer in Nigeria.

Filing station shut down, few jerk pump price to N620 per litre in Kano

You may be interested

NPFL: Sunshine Stars In Ikenne For Maximum Points — Boboye
Sports
1 views
Sports
1 views

NPFL: Sunshine Stars In Ikenne For Maximum Points — Boboye

Webby - September 14, 2024

Sunshine Stars technical adviser, Kennedy Boboye has declared that his team is in Ikenne to pick three points against Remo…

Japan Vs Nigeria Live Blogging – Colombia 2024 FIFA U-20 Women’s World Cup; Round Of 16
Sports
Sports

Japan Vs Nigeria Live Blogging – Colombia 2024 FIFA U-20 Women’s World Cup; Round Of 16

Webby - September 13, 2024

Completesports.com’s Live Blogging of the Colombia 2024 FIFA U-20 Women’s World Cup Round of 16 match between the Young Nadeshiko…

Ghana Set To Play Remaining AFCON Qualifiers In Nigeria After Ban On Kumasi Stadium
Sports
Sports

Ghana Set To Play Remaining AFCON Qualifiers In Nigeria After Ban On Kumasi Stadium

Webby - September 11, 2024

Ghana Black Stars could play their remaining AFCON 2025 home games in Nigeria after the Confederation of African Football (CAF)…

Leave a Comment

Your email address will not be published.