The Federal Government has distanced itself from the recent increase in the pump price of petrol.
On Wednesday, the Nigerian National Petroleum Company Limited (NNPCL) raised fuel prices across the country: in Abuja, the price jumped from N897 to N1,030 per litre; in Lagos, from N855 to N998; in the North-East, from N1,070; and in the South-East and South-South regions, prices hit N1,045 and N1,075 respectively.
This price surge sparked widespread reactions, with many Nigerians urging President Bola Tinubu to intervene and reverse the hike.
However, while addressing the press, the Minister of Information and National Orientation, Mohammed Idris, clarified that the government was not responsible for the latest price increase. He explained that the NNPCL made the decision based on market conditions, without directives from the federal government, as stipulated by the Petroleum Industry Act (PIA), which ended the government’s power to fix petroleum prices.
Idris highlighted that since the subsidy regime ended in May 2023, the NNPCL had been bearing the financial burden to maintain lower prices. However, due to global market volatility, particularly the ongoing Middle East crisis, the NNPCL could no longer sustain the losses.
He stressed that, as a limited liability company, the NNPCL must operate without incurring losses. “The current price increase reflects market realities. NNPCL can no longer absorb the financial losses,” he noted.
The minister urged Nigerians to remain patient, assuring that prices would decrease in the long term. He emphasised that the government is committed to reinvesting the savings from the subsidy removal into key sectors such as healthcare, education, infrastructure, and security.
Idris also pointed out that the government’s investment in Compressed Natural Gas (CNG) would help cushion the impact of rising petrol prices as more operators come into the market.
