The Group Chief Executive Officer, Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari, has allayed the fear of Nigerians on the rising prices of Premium Motor Spirit, otherwise known as petrol, across the country.
Speaking in an interview on a television programme yesterday, Kyari said the removal of subsidy would allow new entrants into the market, a move he said, would aid competition and phase out monopoly.
This, he claimed, would ensure healthy competition which would ultimately lead to a downward review of pump prices of petroleum across the country.
The NNPC boss said competition among major players in the oil sector would force down the price of petrol, as against the upward trends that have caused panic in the country.
Queues returned to fuel stations across the country following the recent increase in the petrol pump price occasioned by the discontinuance of petroleum subsidy.
Earlier on Wednesday, the NNPC said it had adjusted the pump price of petrol to reflect the market realities. The agency, however, failed to state the new prices of petrol.
However, several retail outlets sold the product between 600 and N800 in Lagos, Abuja, Ogun and some other states.
Also, talks between the Federal Government and Organised Labour over the removal of fuel subsidy ended in a deadlock on Wednesday, as they failed to reach a consensus following the hike in petrol pump prices to over N700 from N195 per litre by oil marketers.
On why fuel stations hiked their pump price when they still have in stock already subsidised products, the NNPL boss said “This is the reality of the market. It applies to every commodity and not just petroleum”.
