NNPCL: Competition Will reduce petrol pump Price

By Zulfah Abdulazeez

The Nigerian National Petroleum Company Limited (NNPCL) has said market competition will lead to reduction of petrol pump price. 

The Group Chief Executive Officer of NNPCL, Mele Kyari, said this during an interview on Arise TV.

On Wednesday NNPCL adjusted the pump price in Lagos state to N488 and over N500 in other states.

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However, during the interview Kyari said that the entry would eliminate monopoly.

He added that competition in the market would lead to a reduction in the price of petrol across Nigeria.

He stated that the current inflated prices are just a week or two week reactions.

Mele Kyari, “Subsidy regime doesn’t have a guarantee of repayment back to those who provide the product at subsidize price and now that the market is being regulated, oil marketing companies can actually import product or even if it is produced locally, they can buy and take it into the market and sell it at its retail price.

“Therefore, you will see competition, even with NNPCL. And by the way, by law, NNPCL cannot do more than 30 per cent of the market going forward. As soon as the market stabilises, oil marketing companies are able to come in.

“Companies have different approaches to it and competition will guide that. Ultimately, you will see changes downwards and it is very likely because efficiency will come in.”

He said the birth of the competition would bring about positive development as “people will become more efficient in their depots, in managing their trucks, and in managing their fuel stations so that people can come to their stations.”

“It is showing already; right now, you will see motorists going to stations where they can have price differences. So this will regulate the market and on its own, the price will come down naturally and I don’t see any doubt about this.”