NNPC’s boss Kyari says rising petrol price would reduce

Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL), has assured Nigerians that the rising petrol price would reduce soon. The federal government has removed subsidy on petrol, resulting in increase in the pump price of the product and transportation costs.

Kyari, while speaking on Arise TV, said the subsidy removal would herald healthy competition and, ultimately, a downward review of pump prices of petroleum across the country.

He said, “The beauty of this (subsidy removal) is that there will be new entrants (into the market) because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place.

“And that subsidy regime doesn’t have a guarantee of repayment back to the those who provide the product at subsidise price and now that the market is being regulated, oil marketing companies can actually import product or even if it is produced locally, they can buy and take it into the market and sell it at its retail price.

“Therefore, you will see competition, even with NNPC. And by the way, by law, NNPC cannot do more than 30 per cent of the market going forward. As soon as the market stabilises, oil marketing companies are able to come in.

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“Competition will definitely come in and the market will regulate the prices itself. Therefore, this is just an instantaneous price and within a week or two, you will continue to see different prices because of different approaches from major players, companies have different approaches to it and competition will guide that,” he said.

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