During a press conference, Kyari explained, “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.”
Although the fuel price has increased, Kyari emphasized that
it is not due to a shortfall in petrol supply. He assured the public that there
is no supply issue and that the country has a robust supply with over 32 days
of supply available.
The CEO of the Nigerian Midstream and Downstream Petroleum
Regulatory Authority, Farouk Ahmed, shared similar views and attributed the
price hike to the increase in global crude oil prices. He further explained
that changes in freight costs and other miscellaneous expenses during
distribution contributed to the change in price.
Ahmed stated, “Basically, what we’re seeing is the effect of
market forces. You can see that crude oil prices have been on the rise. Just a
week ago, crude oil prices hovered around $70 per barrel, but now it’s
surpassed $80 per barrel. So naturally, these prices also influence the cost of
the product.”
The explanations provided by Kyari and Ahmed seek to address
concerns and provide transparency regarding the petrol price increase in Nigeria.
They highlight the impact of global market dynamics and emphasize that the
issue is not related to a shortage of supply. As market forces continue to
drive petrol prices, the Nigerian government and relevant authorities will
closely monitor the situation to ensure a fair and regulated market for
consumers.