The Federal Government has clarified that it is not responsible for the recent increase in petrol prices, following widespread calls from Nigerians for President Bola Tinubu to reverse the hike.
On Monday, the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of petrol in Abuja from N897 to N1,030 per litre, and in Lagos from N855 to N998.
Minister of Information and National Orientation, Mohammed Idris, addressed journalists, stating that the price adjustment was made by the NNPCL in response to current conditions in the global energy market.
Idris emphasized that the Federal Government no longer controls the pricing of petroleum products, as outlined in the Petroleum Industry Act (PIA).
“The NNPCL made this decision based on market realities and not under any directive from the government,” he said.
He noted that since the removal of the subsidy in May 2023, the NNPCL had been absorbing the price differential to maintain current prices but can no longer sustain those losses.
The minister attributed the price increase to external factors, including ongoing crises in the Middle East, which have led to significant market volatility.
“The prices of petroleum products are rising globally, and as a limited liability company, NNPCL cannot continue to operate at a loss,” he added.
Idris called for public understanding and assured that, despite these temporary challenges, petrol prices are expected to stabilize and eventually decrease in the future.
Gathered By: Praise Inalegwu