Market Forces Behind New Hike In Fuel Pump Prices – NNPC

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said that market forces or realities are the reason the national petroleum company decided to increase the cost of its fuel pump prices in Nigeria.

Mele Kyari stated this before newsmen on Tuesday after meeting behind closed-door with Vice President Kashim Shettima at the State House, Abuja.

It is observed that the decision of NNPC Limited to increase its fuel pump prices from ₦540 to ₦617 is currently generating reactions in Nigeria.

Kyari dismissed the claim that the new hike is as result of shortage in supply of the Petroleum product, saying in quote: “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.

“No, there is no supply issue. It is not a supply issue.

“When you go to the market, you buy the product, you come to the market and sell it at its prevailing market price. It has nothing to do with supply. We don’t have supply issues.

“We have a robust supply. We’ve had over 32 days of supply in the country. That’s not a problem.”

It would be recalled that prices of fuel increased from ₦187 per litre to ₦540 upward since May 29, 2023 when President Bola Ahmed Tinubu in his inaugural speech said that the era of fuel subsidy is gone forever.

The President said it will use the amount of money realized from the subsidy removal to address other problems affecting the poor in the Country. Some of the palliative measures put in place by the President was greeted with a wide spread criticism and rejection.

Following the wide spread rejection of the government palliative policy and programme, the Spokesperson to the President on Communications, Dele Alake on Tuesday said that the government has directed a review of the ₦8000 conditional cash transfer to vulnerable households in the country mostly affected by the removal of the fuel subsidy.

The Presidential Spokesperson statement reads in quote: “REVIEW OF ₦8, 000 CASH TRANSFER

“You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu administration to constantly dialogue with Nigerians who voted him into office. The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

“In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

“The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor ₦8,000 monthly for a period of six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

“A lot of ill-informed imputations have been read into the programme by not a few naysayers. The Administration believes in the maxim that when there is prohibition, there must be provision. Since subsidy, the hydra-headed monster threatening to kill the economy, has been stopped, government has emplaced a broad spectrum of reliefs to bring help to Nigerians.

“While it should be noted that cash programme is not the only item in the whole gamut of relief package of President Bola Ahmed Tinubu, as a listening leader who has vowed to always put Nigerians at the heart of his policy and programme, the President has directed as follows:-

“That the ₦8,000 conditional cash transfer programmed envisaged to bring succour to most vulnerable households be reviewed immediately. This is in deference to the views expressed by Nigerians against it.

“That the whole gamut of palliative package of government be unveiled to Nigerians. Immediate release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT.  

“The President further assures Nigerians that the ₦500 billion approved by parliament to cushion the pain occasioned by the end of subsidy regime will be judiciously utilised. The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious or political affiliation.

“President Bola Tinubu has promised to always prioritize the wellbeing of Nigerians and he is irrevocably committed to the vow. A number of decisions taken so far by this Administration have buttressed this stance.

“You will recall that the President took a similar decision after listening to complaints from the business community/stakeholders about burdensome taxes, particularly multiplicity of taxes they are made to experience. This warranted the signing of four (4) Executive Orders cancelling some classes of taxes, while suspending the implementation dates of others.

“In addition, the President has also set up a Tax Reform/Fiscal Policy Committee to bring up recommendations that will engender a wholesome fiscal environment for the country and remove anti-business barriers.

“I wish to assure Nigerians that President Tinubu will continue to be a listening leader whose ears will not be dull to the views expressed by the citizenry. The President believes government exists to cater for the interest of the people and he has demonstrated this so clearly”.