By Mike Aladenika.
As Nigerians woke up, Tuesday, to an increased price regime of petroleum products the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited NNPC, Mele Kyari, has blamed market forces for the increase in petrol pump price from N540 to N617 per litre.
Speaking with State House Correspondents after a meeting with Vice President Kashim Shettima at the Presidential Villa Abuja, he explained that the increase was not based on a short supply of petrol.
“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.
“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.
Kyari’s response was on the heels of the increase in pump price of Premium Motor Spirit, popularly called petrol, from N537/litre to N617/litre in NNPCL maga stations in Abuja.
The Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, also said the price increase stemmed from rising crude prices.
He also cited changes in freight prices alongside other ancillary costs importers incurred during distribution as responsible for the hike.
“So when you say market forces are working, basically what it is, is that you can see the price of crude going up.
“A week or so ago, the price of crude was hovering around $70 per barrel. Now, it’s over $80 per barrel. So, of course, the crude prices also drive the product price.
“As the importers are importing, they base their price on the cost of importation plus the freight plus other costs elements in terms of local distribution,” Ahmed explained.
Meanwhile, in Benin City, Edo state capital, the NNPC Mega Station on Sapele Road is currently selling for N591/litter, same with Eli love service station on Sapele Road.
SPARKNEWSNAIJA checks reveal that some other filling stations across the metropolis fixed their pump prices from 600/litter to 620/litter.
Findings also show that major roads in Benin City are now deserted as fewer vehicles are seen. The roads that were hitherto a beehive and traffic laden are now ghost of it's old self , no thanks to the new PMS price regime.
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