Federal Government Clarifies It's Not Responsible for Fuel Price Hike

 

The Federal Government has distanced itself from the recent surge in petrol prices, stating that it is not responsible for the increase. On Wednesday, October 9, the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of petrol from N897 to N1,030 per liter in Abuja, from N855 to N998 in Lagos, and up to N1,075 in the South-South region.

This development sparked concerns across the country, with many Nigerians urging President Bola Tinubu to take action to reverse the price hike.

In an interview, the Minister of Information and National Orientation, Mohammed Idris, clarified that the price increase was solely the decision of NNPCL, and not a directive from the federal government. Idris explained that the NNPCL, now operating as a limited liability company, adjusted the prices in response to current trends in the global energy market.

He emphasized that, following the Petroleum Industry Act (PIA), the government no longer controls petrol prices, as the market has been deregulated. Idris noted that the removal of the fuel subsidy in May 2023 had initially kept prices stable, with the NNPCL absorbing some of the cost. However, the company could no longer bear the financial losses due to rising global prices.

"The price hike is driven by several factors, including the ongoing crisis in the Middle East and market volatility," Idris said. "As a business entity, NNPCL cannot continue to operate at a loss."

He urged Nigerians to remain patient and understanding, assuring them that prices would eventually decrease. He also highlighted that the government is reinvesting the savings from the subsidy removal into key sectors such as healthcare, education, infrastructure, and security. Additionally, the government's investments in compressed natural gas (CNG) projects are expected to alleviate the impact of rising fuel costs in the long term.