The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, says market forces are responsible for the rise in pump price of Premium Motor Spirit (PMS) known as petrol.
Kyari spoke on Tuesday afternoon after a meeting with Vice President Kashim Shettima at the Aso Rock.
He said with deregulation of the oil sector, market realities will force the price of petrol up sometimes and at other times force it down.
The NNPCL boss said the increase in the pump price per litre of petrol from N540 to N617 is not a supply issue, assuring Nigerians that the country has “robust supply” of the vital commodity.
Kyari explained that the increase in the price of PMS has nothing to do with supply issues, adding that there is a robust supply of the product in the country.
”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 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, 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 there will be stability of supply,” he said.
He assured Nigerians that the policy was the best way for the country going forward.
“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 a number of companies have imported petroleum; 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,” Kyari said.
