Nigerians will likely see downward adjustment of fuel price within 2,3 weeks - Mele Kyari

The Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), Mele Kyari, has said that the hike in fuel price is said to see a reduction within two or three weeks.

On Wednesday, May 31, NNPC released a statement announcing an increase in the fuel price in its outlets across the country.

Fuel stations have been reported to have increased their pump prices by over 200% from N195 per litre to between N488 per litre and N557 per litre.

This occurs after President Muhammadu Buhari announced the removal of subsidy in his inaugural speech on May 29.

Responding to a question asked on Arise Television Morning show, whether or not Nigerians should expect a downward review of petrol prices, Mele Kyari said;

"The prices we are seeing today at our stations are the current market price of the commodity. So what this means is that prices can go down at anytime and the market will adjust itself. The beauty of this is that there will be new entrants because oil marketing companies were reluctant to come into the market all along because of the subsidy regime that is in place. And that subsidy doesn't have the guarantee of repayment back to those who provide the product at subsidised prices. Now that the market regulates itself, oil marketing companies can actually import products or even if produced locally, they can buy and take it into the market and sell it at its commercial price. Therefore, you will see competition even with NNPC.

Competition will surely come in and definitely the market will regulate the price itself. This is just an instantaneous price. In a week or two weeks, you can continue to see adjustments that is happening in many jurisdiction.

Countries have different approaches to it. Companies have different approaches to it. Competition will drive that but ultimately you will see changes in price downwards. It is very likely."