The Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, on Tuesday revealed why the price of petrol increased to N617 on Tuesday.
Ahmed speaking after meeting with the Vice President, Kashim Shettima at the Presidential Villa said the price increase arose from rising crude prices.
He also cited changes in freight prices alongside other ancillary costs importers incur during distribution.
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.”
OsunDailyNG had earlier reported that Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari confirmed the hike in the price of petrol.
Kyari attributed the recent rise in petrol pump prices from N540 to N617 per litre to market forces.
He assured state house correspondents that the price increase is not a consequence of a petrol shortage.
