The Nigerian National Petroleum Company Limited has said that the increase in the price of Premium Motor Spirit (PMS) which is known as gasoline is actually selling. This was announced by the NNPC Group Managing Director, Malam Mele Kyari, during a brief interview with journalists while holding a private meeting with the Vice President, Kashim Shettima at the Presidential Villa on Tuesday, July 18, 2023, Abuja. Kyari said the increase in the price of petrol at the pump has nothing to do with the supply issue, adding that there is a shortage of products in the country.
Today it was reported that the price of petrol at the pump is increasing due to the rising and rising value of the naira in the country. Nigerians woke up on Tuesday and were surprised to see that the price of petrol has been changed in petrol stations across the country, including the Nigerian National Petroleum Company Limited (NNPCL). In Lagos, the NNPC is said to be selling the product at about 565 naira per liter, while some other ports are also selling it. This compares to the previous price of between N488 and N490 per liter at NNPC petrol stations. The price of this product is said to be high in Abuja at N617 per liter or more. In the meantime, many independent business centers are closing and not yet sold.
Kyari said, ” 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. ” 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 that’s not a problem. What I know is that the market forces will regulate the market, prices will go down sometimes and sometimes it will go up, but supply will be stable.’’
” 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.’’
Also speaking on the issue, the Chief Executive Officer, of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said the authority doesn’t set the price of the product but it was market determines itself. Ahmed said ” As a regulator you know I told you back in May we are not going to be setting prices 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 and course the profit margin by the importer. ” This market is deregulated and is open to all participants. As mentioned also yesterday (Monday) when I was in Lagos, we have about 56 marketing companies that have applied for and obtained licenses to import. ” Out of those 10 of them have indicated to supply within the third quarter which is July, August, and September. And out of those already, we received some cargoes from some of these Marketers.’’
