The Nigerian National Petroleum Company Limited (NNPCL) has explained the reason behind the sudden rice in the price of petrol from about ₦515 – ₦520 per litre to ₦617 per litre.

The NNPCL blamed the spike in petrol pump prices in the country on ‘market forces’ as Nigerians continue to struggle with high inflation, soaring prices of food, transportation and logistics.

Mr. Mele Kyari, the NNPCL Group Chief Executive Officer, said at a press briefing after a closed-door meeting with Vice President Kashim Shettima at the State House in Abuja, that with the liberalization of the oil sector, market realities will force the price of gasoline up at times and down at others.

“We have the marketing wing of our company. They adjust prices depending on the market realities.

“This is really what is happening; 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. This is what we have seen, and in reality, this is what (how) the market works,” he said.

He stated further that the country has enough supply of petroleum products for distribution across the country.

“When you go to the market, you buy the product; you come to the market, you sell it at the prevailing market prices. Nothing to do with supply. We don’t have supply issues. There is a robust supply. We have over 32 days of supply in the country,” he said.

“Yes, what I know is that the market forces will regulate the market.

“Prices will go down sometimes; sometimes, it will go up. But there will be stability of supply, and I’m also assuring Nigerians that this is the best way to go forward so that we can adjust prices when market forces come to play.

“I don’t have the details at this moment, but I know that our marketing wing acts just like every other company in this business. I know that a number of companies have imported petroleum products today. So, many of them are on line.

“I’m sure my colleague would confirm this. Market forces have started to play; people have started having confidence in the market. Private sector people are importing products, but there is no way they can recover their cost if they cannot take market reflective cost.”

Recall that earlier on Tuesday, the pump prices of Premium Motor Spirit popularly called petrol rose to ₦617 per litre at various outlets of the NNPCL.

President Bola Tinubu announced the removal of fuel subsidies in his inaugural address on 29 May and the decision has received mixed reactions among the citizens.

The president has promised to cushion the effects of the already suspended subsidy by introducing palliatives to counter the shocks that come with the move.