February 25, 2024

NNPCL, NMDPRA say petrol prices skyrocket to N617 per litre, above due to market forces, rising crude oil prices

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Oredola Adeola 
Nigerian National Petroleum Company Limited, NNPCL and  Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have attributed the rise in petrol pump prices from N488 to N617/litre across the country to force supply and demand as well as the rising price of crude oil in the international market.
Mele Kyari, Group Chief Executive Officer, NNPCL made this known after a closed-door meeting with Kashim Shettima, Nigeria’s Vice President at the State House, insisting that the price hike is an indication of the dynamics of a market-regulated pricing model.
According to him, when making sure that the market regulates itself. prices of the commodity will go up and sometimes come down once in a while.

The GCEO NNPCL said, “There is no supply issue. The hike is not a supply issue. 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.

Farouk Ahmed, Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA) attributed the price hike to global crude oil prices increase.

According to the ACE, the price hike is contributed by the freight costs and other miscellaneous expenses that importers encounter during distribution contribute to price changes.

He said, “We are basically seeing 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.”