NNPCL Addresses Fuel Price Hike As Petrol Hits N617 Per Litre

The Nigerian National Petroleum Company Limited (NNPCL) acknowledged the rise in petrol prices from N537 per litre to N617 per litre in the country.

Mele Kyari, the managing director of the NNPCL, spoke to the journalists on Tuesday after a meeting with Vice President Kashim Shettima at the State House in Abuja, and said that the market realities have forced the petrol price to go up and sometimes down.

"We have the marketing wing of our company. They adjust prices depending on the market realities," he said, Premium Times reported. "This is really what is happening; 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. This is what we have seen, and in reality, this is what (how) the market works."

Kyari said there were no supply issues when it came to petrol, adding there were enough petroleum products to distribute throughout the country.

He pointed out that marketers were buying the product and then selling it at a high price to the consumers.

"We don't have supply issues. There is a robust supply. We have over 32 days of supply in the country," he said. "Yes, what I know is that the market forces will regulate the market. Prices will go down sometimes; sometimes, it will go up."

However, he said there will always be stability of supply, and added he can assure Nigerians that "this is the best way to go forward so that we can adjust prices when market forces come to play."

Independent oil marketers confirmed the increased petrol price Tuesday, noting that this was because "NNPCL is still the major importer of petrol into Nigeria currently, though other marketers are gradually importing the commodity," Punch reported.

Independent Petroleum Marketers Association of Nigeria's Secretary Mohammed Shuaibu said at some NNPCL stations the price was recorded to be N617 per litre on Tuesday morning.

The latest increase came after President Bola Ahmed Tinubu announced on May 29 that the fuel subsidy has been removed. Following the announcement, the prices skyrocketed from N195 per liter to N600 per liter.

At that time, some fuel stations were shut as Nigerians started panic buying fuel in desperation, following which the state-owned NNPCL requested citizens to not "buy more than they need.

Subsidy removal was first announced by former president Muhammadu Buhari last year as part of fiscal and petroleum sector reforms. However, the plan was dropped because of fears of protests during the presidential election held on Feb. 25.