In response to recent media speculation regarding a possible surge in petroleum pump prices, the Nigerian National Petroleum Company Limited (NNPCL) has said it has no intention to increase the retail price of petroleum.
The oil company said this in a statement issued via its official X (formerly Twitter) platform on Monday night.
Reports had suggested that the petrol pump price, currently at N617 per litre, might see an increase to levels ranging from N720 to N750 in the upcoming weeks.
But in its reaction on Monday, the NNPCL dismissed the notion of any imminent price hike.
“Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our petrol motor spirit (PMS) pump prices as widely speculated.
“Please buy the best quality products at the most affordable prices at our NNPC Retail stations nationwide,” the NNPCL said.
The backdrop to this development traces to May, when the NNPCL initiated adjustments to pump prices in response to the removal of the petroleum subsidy.
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President Bola Tinubu’s announcement on the removal of fuel subsidy during his inaugural address on May 29 precipitated the adjustment.
Subsequently, the NNPCL instructed its outlets across the country to sell fuel within the price range of N480 to N570 per litre. This was a significant surge, nearly 200 per cent higher than the previous price of below N200.
The repercussions of this adjustment were felt as transportation fares and prices of goods and services rose in tandem.
In July, the petrol pump prices escalated further, reaching N617 per litre at various NNPCL outlets in Abuja and other regions of the nation. At the time, the company attributed the price hike to the influence of ‘market forces’.
Mele Kyari, the NNPCL Group Chief Executive Officer, elaborated on the market dynamics during an interaction with journalists after a meeting with Vice President Kashim Shettima at the State House in Abuja.
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Kyari emphasized that the subsidy removal and deregulation of the oil sector mandated the market to dictate price fluctuations.
He explained, “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.”