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Responding to the shock, the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari, calmed the worries of Nigerians explaining that the price surge was due to shortage of supply and market forces.
In a renewed development, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said that marketers will crash the prices in a month or two by flooding the market with petroleum products.
Yakubu Suleiman the Public Relations Officer of IPMAN made the disclosure in an interview on Arise Tv.
As Nigerians cope with the second jump in prices, Suleiman explained that the prices are influenced by the international price of crude which has risen to $80 per barrel as well as the cost of importation after naira floating.
He also revealed that it is difficult to transport good from the Black Sea due to the Russia-Ukraine war making it more expensive to import products.
He explained, “What is happening is market determining the price. We are in deregulation. Definitely, market forces will determine prices.
“We can see that crude oil prices are on the rise and the higher the prices in the local market. Crude oil has now reached about $80 per barrel. So, that was what prompted this.
“We have to understand because of the Russia/Ukraine war, the Black Sea which is the road for the vessels has a red flag. Most of the vessels that can change to other routes to Nigeria is a longer journey and the cost is high.
“The marketers charge to cover the transportation cost. In the next one or two months, Nigerians will buy petroleum product by the grace of God below what we are seeing.”
He revealed that the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA)
have granted licenses to marketers to import petroleum products.
Suleiman said that products belonging to marketers like AYM Shafa and others have arrived the country, adding that more would arrive in coming weeks.
The IMPMAN PRO said, “Before, NNPC was the sole importer of petroleum products. But when Mr President made the clear statement that subsidy has been removed and deregulation has started, the Nigerian Midstream Downstream Petroleum Regulatory Authority brought out some regulations and criteria for issuing licenses to marketers to import fuel.
“Some marketers among us came out and applied and they went ahead to import their cargoes. AYM Shafa’s cargoes and other marketers have already arrived and have been discharged.
“I believe in the coming weeks things will be better because it is first about the supply.”
