Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, stated on Tuesday why the price of fuel climbed to N617 on Tuesday.
Speaking after meeting with Vice President Kashim Shettima at the Presidential Villa, Ahmed stated that the price hike was caused by rising crude prices.
He also mentioned increases in freight pricing, as well as other ancillary expenditures incurred by importers during distribution.
UPDATE: Why Fuel Price Rose To N617/litre — NNPCL
Ahmed while addressing State House reporters said, “So, when you say market forces are working, basically what it is, is that you, you can see the price of crude going up.
“A week or so ago, the price of crude was hovering around $70 per barrel. Now, it’s over $80 per barrel. So, of course, the crude prices also drive the product price. As the importers are importing, they are basing it on the cost of importation plus the freight plus other costs elements in terms of local distribution.”
Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, had already acknowledged the price increase.
Kyari blamed market forces for the recent increase in petrol pump prices from N540 to N617 per litre.
He informed state house correspondents that the price increase was not caused by a gasoline shortage.
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