- The Federal Government has distanced itself from the latest petrol price hike by the Nigerian National Petroleum Company Limited (NNPCL)
- Minister of Information and National Orientation, Mohammed Idris explained that the prices are a reflection of the market realities, not government directives
- Minister Idris noted that long-term relief is expected with the introduction of Compressed Natural Gas (CNG) alternatives and more operators entering the market
Following growing public backlash on the recent fuel price hike, with many Nigerians appealing to President Bola Tinubu to intervene, the Federal Government has come out to explain it has no hand in it.
Mohammed Idris, the Minister of Information and National Orientation, clarified on Wednesday, October 9 that the Nigerian National Petroleum Company Limited (NNPCL) made the decision based on current conditions in the energy sector and not on the government directives.
Government no longer sets fuel prices - Idris explains
“The NNPCL made this decision based on market realities and not on any instruction from the government, Idris stated.
The Nigerian National Petroleum Company Limited had recently raised the petrol pump price to N998 per litre in Lagos, N1,030 in Abuja, N1,070 in the North-East, N1,045 in the South-East, N1,025 in the South-West, and N1,075 in the South-South.
The minister emphasised that NNPCL did so independently of any directive from the federal government, as the government no longer sets fuel prices under the Petroleum Industry Act (PIA).
Government to invest fuel subsidy savings in healthcare, others
He explained that following the end of the subsidy in May 2023, the NNPCL had been offsetting the price gap to keep prices steady, but it has reached a point where it can no longer absorb the resulting losses.
“Since the removal of the subsidy in May 2023, NNPCL has been absorbing the price differential to maintain the current range.
Mohammed Idris mentioned that the government would allocate the savings from the subsidy cut to enhance essential sectors like healthcare, education, infrastructure, and security.
Global rise in petroleum prices forces NNPCL to adjust, Idris
The minister appealed to Nigerians for continued patience with both the NNPCL and the government, reassuring them that fuel prices would eventually decrease in the long term.
He further said, “But the company has now reached a point where it can no longer sustain those losses.
“The prices of petroleum products are rising globally, and NNPCL, being a limited liability company, cannot continue to operate at a loss,” Idris added.
Speaking further, he explained that the government's initial investments in Compressed Natural Gas (CNG) would help alleviate the impact, especially as more operators join the market.
NLC leader Ajaero slams FG, calls for an end to frequent petrol price increases
Meanwhile, TheRadar earlier reported that the Nigeria Labour Congress (NLC) demanded immediate reversal of the latest petrol price hike.
Labour President, Joe Ajaero, criticised the government for repeatedly raising fuel prices without addressing workers’ minimum wage.