June 1, 2023

Fuel pump price can go down at any time, NNPC boss assures Nigerians


Mele Kyari, NNPCL boss

The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Dr Mele Kyari has disclosed that the current high petrol price has the capacity to fall any moment from now.

Recall that petrol pump prices skyrocketed across the country which has led to queues at filling stations following the inaugural speech of President Bola Tinubu announcing the fuel subsidy removal. 

Reacting to the situation of things regarding fuel, Kyari said the new petrol pump price is reflective of the current market cost of the commodity in an interview with Arise TV on Thursday. 

Although the President’s media team had explained that the implementation of the policy would start this month, the effects are already being felt jerking the price of the product to high rates.

The NNPC, which supported the president’s declaration, revealed the adjustment of the pump price and its retail outlets nationwide, saying that the adjusted pump price conforms with market realities.

Kyari said, “The prices we are seeing today at our station are the current market price of the commodity. So, what this means is that prices in the market can go down at any time and of course, the market will adjust itself.” 

He said, “The beauty of this is that there’ll be new entrants because oil marketing companies know the result of their reluctance to come into the market all along is the very fact that there’s a subsidy regime that is in place, and that subsidy regime doesn’t have the guarantee of repayment back to those who provide the product at subsidised prices.

“Now that the market regulates, oil marketing companies can import products, whether it is produced locally, they come by and take it into the market and sell it at a commercial price.

“Therefore, you will see competition, even with NNPC, and by the way, by law NNPC cannot do more than 30 per cent of the market going forward. As soon as the market stabilises, all marketing companies can come in, it means that even the requirement of energy security in the law indicates that you have to be able to have at least 30 per cent of the stock in the country.

“In a week or two, there will be changes downward, as competition will come in. As soon as competition comes in, people become more efficient in their depots, in managing their trucks. There will be no monopoly. NNPC will not continue the supply of this product alone and therefore, we see the comfort for the consumer.”