Just In: NMDPRA CEO, Ahmed Reveals Why Petrol Price Was Increased

The Chief Executive Officer (CEO), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, on Tuesday, revealed the price of petrol increased due to rising crude prices. ⁣

Ahmed speaking after meeting with the Vice President, Kashim Shettima at the Presidential Villa said 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. ⁣

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⁣“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.”

Earlier, The Eagle reported comments made by the national operations controller, of the Independent Marketers Association of Nigeria, IPMAN, Mike Osatuyi, saying: “It is not about the NNPC Limited. It is about the market fundamentals. Every marketer stands alone with its different cost elements. The low value of the Naira is currently impacting the market. It is now more than N800 to a dollar.”