'It's for the best' -NNPC speaks on fuel price hike to N617 per litre, Lagosians pay less

Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited(NNPCL) has provided an explanation on new fuel prices.

Kyari attributed the increase in fuel price from N540 to N617 per litre to market forces while assuring Nigerians that the policy is for the good of the country.

He also explained that the petrol price will not be stagnant as the country now operates a market-regulated pricing model since the removal of the fuel subsidy.

Kyari disclosed this in Abuja after a closed-door meeting with Vice President Kashim Shettima at the State House, Abuja on Tuesday, July 18, 2023, Punch reports.

His words: “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.

"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 several companies have imported petroleum pms 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."

Fuel price increase

The NNPC boss further stressed that there is enough fuel to serve Nigerians for the next 32 days, and supply is not a problem.

Also, Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority reaffirm that the price hike to global crude oil prices increase which is around $80 per barrel.

He also added that changes in freight costs and other miscellaneous expenses that importers encounter during distribution contribute to price changes.

Lagosians buy cheaper fuel

Meanwhile, checks on NNPCL-operated stations show that Abuja residents are paying N617 for a liter of petrol, while Lagosians are paying N568 per liter. In Delta state, one liter is sold for N600.

In northern states such as Sokoto and Maiduguri, it is expected that the pump price will reach N640.