Petrol price hike

By Uzair Adam

The Federal Government has stated that it should not be blamed for the recent surge in petrol prices.

On Wednesday, the Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of fuel, with Abuja seeing a jump from N897 to N1,030 per litre, Lagos from N855 to N998, the North-East to N1,070, the South-West to N1,025, the South-East to N1,045, and the South-South to N1,075.

This price hike has sparked widespread reactions, with many Nigerians urging President Bola Tinubu to intervene and reverse the increase.

Speaking to Daily Trust, the Minister of Information and National Orientation, Mohammed Idris, clarified that the NNPCL’s decision was not directed by the government.

He explained that the Petroleum Industry Act (PIA) prevents the government from setting prices for petroleum products, making the NNPCL’s decision a response to the prevailing energy market conditions.

Idris further noted that since the removal of fuel subsidies in May 2023, the NNPCL had been bearing the cost of keeping prices stable but could no longer continue to absorb such losses.

“The price fluctuation is driven by several factors, including the crisis in the Middle East, which has caused global volatility in petroleum markets.”

“As a limited liability company, the NNPCL cannot sustain operating at a loss,” the minister said.

He appealed to Nigerians for patience and understanding, assuring that the government remains committed to investing the savings from subsidy removal into sectors such as healthcare, education, infrastructure, and security.

The minister also highlighted that the government’s investment in compressed natural gas (CNG) would help reduce the burden of rising fuel costs as more operators enter the industry.