The administration of President Bola Tinubu has distanced itself from the recent increase in petrol prices, clarifying that the Nigerian National Petroleum Company Limited (NNPCL) made the decision independently, based on prevailing market conditions. This development has seen pump prices soar to as much as ₦1,075 per litre in some regions.
As of Wednesday, NNPCL raised the price of fuel in Abuja from ₦897 to ₦1,030 per litre, while prices in Lagos jumped from ₦855 to ₦998 per litre.
Other regions experienced similar increases, with the North-East seeing prices at ₦1,070 and South-West states averaging ₦1,025. In the South-East and South-South regions, prices rose to ₦1,045 and ₦1,075, respectively.
This significant price hike has sparked widespread anger among Nigerians, with many calling on President Tinubu to intervene and reverse the increase.
However, in an interview with Daily Trust, the Minister of Information and National Orientation, Mohammed Idris, clarified that the government is not responsible for the hike.
Idris explained that the NNPCL’s decision was influenced by various factors impacting the global energy industry, including the volatility caused by the ongoing crises in the Middle East.
He further noted that the NNPCL, as a limited liability company, can no longer absorb the financial losses from previous pricing models.
“The differential you’re seeing is a result of different factors,” the minister said. “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.”
Idris urged Nigerians to understand the challenges faced by the NNPCL and the government, assuring that prices would stabilize in the long run.
He emphasized that the savings from the removal of the fuel subsidy would be reinvested into crucial sectors like healthcare, education, infrastructure, and security.
Additionally, the minister mentioned that the government’s ongoing investment in Compressed Natural Gas (CNG) would help cushion the impact of the rising fuel prices as more operators enter the market.