The Federal Government of Nigeria has denied involvement in the recent increase in petrol prices, blaming the Nigerian National Petroleum Company Limited (NNPCL) for the hike.
Minister of Information and National Orientation, Mohammed Idris, clarified that the NNPCL’s decision was in response to prevailing market conditions. “The differential you’re seeing is a result of different factors. One of them is the crisis in the Middle East. There’s volatility in the market,” he said.
Idris attributed the price increase to global market volatility and the end of the subsidy regime in May 2023. “NNPC cannot continue to absorb these losses for Nigeria because, as a limited liability company, it would be operating at a loss.”
The minister emphasized that the government can no longer fix petroleum prices due to the provisions of the Petroleum Industry Act (PIA).
Idris urged Nigerians to understand the situation, assuring that prices would eventually decrease. He added that the government would continue to invest savings from the removal of subsidies in critical sectors like healthcare, education, infrastructure, and security.
The initial investments in CNG are expected to alleviate the impact as more operators invest, he mentioned.
Recently, the NNPCL raised the pump price of fuel from N897 to N1,030 in Abuja, N855 to N998 in Lagos, N1,070 in North-East, N1,025 in other South-West states, N1,045 in South-East, and N1,075 in South-South.
The price hike has sparked outrage among Nigerians, with many calling on President Bola Tinubu to reverse the increment.
