Fuel Price Hike Based on Market Realities – NNPCL

The Nigerian National Petroleum Company of Nigeria (NNPCL) said the increase in the price of Premium Motor Spirit (PMS) is based on market realities.

According to Punch, The company’s Group Chief Executive Officer, Mallam Mele Kyari, said this in a press interview on Tuesday, shortly after a private meeting with Vice President Kassim Shettima at the Presidential Villa in Abuja.

Kyari explained that the PMS price increase has nothing to do with supply problems, adding that there is an ample supply of PMS in the country.

I don’t know the details,” he said, “but PMS has a marketing department, and they adjust their prices according to the realities of the market.

And this is what I mean by making sure that the market adjusts itself so that prices can go up or down.

You can go to the market, buy the product, and sell it at the prevailing market price.

There is more than a 32-day supply in the country, so there is no problem. Sometimes prices go down, sometimes up, but the supply is stable.

He affirmed that this policy is the best way forward for Nigeria.

‘I also assure the Nigerian people that this is the best way forward and that the market will adjust prices as it comes.

‘I know that some companies are importing petroleum PMS, and I am sure that the market will be able to adjust the price when the market comes,’ he said. Market forces started to work, people had confidence in the market, and private companies started to import products.

And if you can’t take the market-reflective costs, it’s impossible to recoup those costs.”

Farouk Ahmed, chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the agency does not set product prices; the market does.

“As you saw in early June when the prices were announced, it was based on import costs plus other logistics of distribution and of course the margins made by the importers.

This market is deregulated and open to all participants.” As I said yesterday (Monday) when I was in Lagos, there are about 56 distributors who have applied for and obtained import licenses.

Ten of those companies have committed to supply during the third quarter (July, August, and September).” Ten of them have indicated that they will supply during the third quarter (July, August, and September), and we have already received shipments from several of them.

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