The Federal Government has clarified that it is not responsible for the recent increase in the pump price of petrol.
EagleEyesNews reports that the Nigerian National Petroleum Company Limited (NNPCL) has raised fuel prices to N1,030 nationwide.
The new prices are N1,070 in the North-East, N1,025 in various South-West states, N1,045 in the South-East, and N1,075 in the South-South region.
This decision has sparked significant criticism of the economic policies under President Bola Tinubu’s administration.
Critics argue that the government has negatively impacted citizens’ lives since the removal of the petroleum subsidy and the floating of the Naira in 2023. Prominent figures, including labor union leaders, have called on President Tinubu to reverse the price increase immediately.
In an interview with Daily Trust, the Minister of Information and National Orientation, Mohammed Idris, stated that the government should not be blamed for the latest fuel price hike.
He explained that the NNPCL’s decision was made in response to current conditions in the energy sector and emphasized that it acted independently of any federal government instruction, as the government can no longer set petroleum product prices in accordance with the Petroleum Industry Act (PIA).
He elaborated that since the subsidy regime ended in May 2023, the NNPCL had been subsidizing prices to maintain stability.
However, the company has indicated that it can no longer sustain 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, NNPCL 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 understanding towards the NNPCL and the government, assuring them that prices would eventually decrease. He stated that the government would continue to invest the savings from the subsidy removal into critical sectors such as healthcare, education, infrastructure, and security.
He added that the government’s initial investments in Compressed Natural Gas (CNG) would also help mitigate the impact, as more operators enter the market.