The Federal Government of Nigeria has stated that it bears no responsibility for the recent increase in petrol prices.
On Wednesday, the Nigerian National Petroleum Company Limited announced a significant rise in pump prices across various regions.
In Abuja, the price surged from N897 per litre to N1,030, while in Lagos it increased from N855 to N998. Other regions saw similar hikes, with prices reaching N1,070 in the North-East, N1,025 in other South-West states, N1,045 in the South-East, and N1,075 in the South-South, according to Daily Trust.
The fuel price increase has sparked widespread reactions among Nigerians, who are urging President Bola Tinubu to take action to reverse the hike.
Commenting, the Minister of Information and National Orientation Mohammed Idris, stated that the government should not be held accountable for the recent rise in petrol prices.
Idris clarified that the Nigerian National Petroleum Company Limited made the decision to raise prices based on current conditions in the energy sector, stressing that it acted independently and not under federal government directives.
He noted that the federal government is no longer able to fix petroleum product prices, in accordance with the provisions of the Petroleum Industry Act.
He explained that since the subsidy regime ended in May 2023, the NNPCL had been paying a differential to maintain previous price levels.
However, the company has now stated that it can no longer absorb these losses.
“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 remain patient with both the NNPCL and the government, assuring them that prices are expected to decrease in the long run.
He stated that the government plans to invest the savings from the removal of the subsidy into critical sectors, including healthcare, education, infrastructure, and security.
He added that the government’s initial investments in compressed natural gas (CNG) would help mitigate the impact of rising fuel prices, as more operators enter the market.
