The first Group Chief executive officer (GCEO) of the Nigerian National Petroleum company limited (NNPC limited), Mele Kyari said that the new petrol prices is a reflection of the current market price of the commodity.
According to him, it means that the prices in the market can go down at any time.
The former Nigerian National Representative at the Organization of Petroleum Exporting Countries (OPEC) made the statement in an interview with Arise TV on Thursday.
He explained that the good thing about the Price Hike of petrol is that it will allow new entrance into the market and it can cause oil marketing companies to import product, regardless of whether they were produced locally or not,” they come by and take it into the market and sell it at a commercial price”.
This, he added, If continue in a week or two, will lead to competition, which will result to NNPC not being the only one supplying the product and therefore will stabilize the market.
He said, “The prices we are seeing today at our station are the current market price of the commodity. So, what this means is that prices in the market can go down at any time and of course, the market will adjust itself.
“The beauty of this is that there’ll be new entrance because oil marketing companies know the result of their reluctance to come into the market all along is the very fact that there’s a subsidiary regime that is in place, and that subsidiary regime doesn’t have the guarantee of repayment back to those who provide the product at subsidised prices.
“Now that the market regulates, oil marketing companies can import product, whatever if it is produced locally, they come by and take it into the market and sell it at a commercial price.
“Therefore, you will see competition, even with NNPC, and by the way, by law NNPC cannot do more than 30 percent of the market going forward. As soon as the market stabilises, all markets as companies can come in, it means that even the requirement of energy security in the law indicates that you have to be able to have at least 30 percent of the stock in the country.
“In a week or two, there will be changes downward, as competition will come in. As soon as competition comes in, people become more efficient in their depots, in managing their trucks. There will be no monopoly. NNPC will not continue the supply of this product alone and therefore, we see the comfort for the consumer.”