The Nigerian National Petroleum Company Limited says market realities was responsible for the increase in the price of Premium Motor Spirit (PMS) also known as petrol.

Mele Kyari, NNPCL Group Chief Executive Officer, stated after meeting with the Vice President, Kashim Shettima, at the Presidential Villa, on Tuesday in Abuja.

Kyari added that there was enough supply of the product in the country.

” I don’t have the details at this moment. You know we have the Marketing Wing of the company, they adjust prices depending on the market realities."

" And this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also and this is really what we are seeing in reality this is how the market works.”

"There is no supply issue completely when you go to the market you buy the product you come to the market and sell it at prevailing market price there is nothing to do with supply we don’t have supply issues.” He said.

The NNPCL boss assured Nigerians that the policy was the best way for the country going forward.

"I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when the market comes.”

"I know that a number of companies have imported petroleum pms so many of them are online. Market forces have started to play, people have confidence in the market and private sector people are now importing products.”

"And there is no way they can recover their cost if they cannot take market reflective cost,” Kyari said.

Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority does not set price of the product but the market determines itself.

"As a regulator you know I told you back in May we are not going to be setting prices, the market will determine itself and as you saw back in early June when prices came out it was based on the cost of importation plus other logistics of distribution and of course the profit margin by the importer.”

"This market is deregulated, and is open to all participants. As mentioned also yesterday (Monday) when I was in Lagos we have about 56 marketing companies that have applied for and obtained licenses to import."

"Out of those 10 of them have indicated supply within the third quarter which is July, August and September. And out of those already we received some cargoes from some of these Marketers”. Says Ahmed.

The pump price of Premium Motor Spirit, was on Tuesday raised from N537/litre to N617/litre at some filling stations operated by the Nigerian National Petroleum Company Limited across Nigeria.