Business
NNPC Releases New Guidelines Regarding Increase In Petrol Prices
The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, addressed concerns on Thursday regarding the rising prices of Premium Motor Spirit (petrol) and sought to alleviate panic among Nigerians.
Kyari expressed his belief that the entry of new competitors in the oil sector would inevitably lead to a drop in petrol prices, countering the recent upward trend that has caused anxiety across Nigeria.
Earlier reports from GWG.ng attributed the influx of Nigerians at fuel stations to the rumoured removal of petrol subsidies. On Wednesday, the NNPC announced an adjustment in the petrol pump price to reflect current market conditions, although specific new prices were not provided.
As a result, many retail outlets in Lagos, Abuja, Ogun, and other states have been selling petrol for prices ranging from N600 to N800.
Negotiations between the Federal Government and organized labor regarding the subsidy removal came to a halt on Wednesday, as they failed to reach an agreement in light of the significant increase in petrol pump prices from N195 to over N700 per litre by oil marketers.
During an interview on Arise TV’s Morning Show, Kyari reiterated that the removal of subsidies would attract new players to the market, fostering competition and putting an end to monopolistic practices. He argued that this change would ultimately lead to a reduction in petrol prices across the country.
“The beauty of this subsidy removal is that it will encourage new entrants into the market because the reluctance of oil marketing companies to participate thus far has been due to the existing subsidy regime,” Kyari explained.
With the market now deregulated, Kyari anticipated increased competition, including from the NNPC itself, which is legally limited to controlling a maximum of 30% of the market.
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