We have no hand in recent petrol price hike – FG

The Federal Government has distanced itself from the recent increase in petrol prices, clarifying that it is not responsible for the surge.

On Wednesday, the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of fuel across the country, with prices reaching N1,030 per litre in Abuja, N998 in Lagos, and as high as N1,075 in the South-South.

The hike has sparked widespread reactions, with many Nigerians urging President Bola Tinubu to take action to reverse the increase.

However, in an interview with Daily Trust, Minister of Information and National Orientation, Mohammed Idris, stated that the decision was made by the NNPCL independently, based on the current realities of the energy market.

He explained that the government no longer has the authority to set fuel prices, as stipulated by the Petroleum Industry Act (PIA).

Idris further clarified that since the removal of the fuel subsidy in May 2023, the NNPCL had been covering the cost differentials to maintain stable prices.

However, the company can no longer sustain the losses, prompting the latest price adjustment.

“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. Therefore, the prices of petroleum products are going up, consistent with what is happening with other operators in the industry globally. Secondly, NNPC cannot continue to absorb these losses for Nigeria because as a limited liability company, it would be operating at a loss,” he said.

The minister urged Nigerians to continue to show understanding with the NNPCL and the government, assuring that in the long run the prices would ultimately come down.

He said the government would continue to invest the savings from removal of subsidy to improve other critical sectors like healthcare, education, infrastructure, and security.

He added that the initial investments of the government in CNG would also ameliorate the impact even as more operators invest.