In response to public outcry over the recent increase in petrol prices, the Federal Government has issued a clarification, stating that it is not responsible for the hike in pump prices.
The government’s statement, issued in response to widespread reactions from Nigerians urging President Bola Tinubu to reverse the increase, seeks to distance itself from the price hike while acknowledging the significant public concern it has sparked.
The Nigerian National Petroleum Company Limited (NNPCL) had yesterday adjusted the pump price of petrol upward, with prices increasing from N897 per liter to N1,030 in Abuja, and from N855 to N998 in Lagos.
In a statement to journalists, the Minister of Information and National Orientation, Mohammed Idris, explained that the price hike was driven by prevailing conditions in the global energy market. Idris sought to allay public fears and provide context for the increase, highlighting the impact of global factors beyond the government’s control on the local price of petrol.
The Minister of Information reiterated that the Federal Government has relinquished control over fuel pricing, in accordance with the provisions of the Petroleum Industry Act (PIA).
He stated “The NNPCL made this decision based on market realities and not on any instruction from the government.
“Since the removal of the subsidy in May 2023, NNPCL has been absorbing the price differential to maintain the current range.
“But the company has now reached a point where it can no longer sustain those losses.”
Idris also attributed the recent petrol price hike to external factors that have destabilized the global energy market. Specifically, he identified the ongoing crisis in the Middle East as a significant factor contributing to volatility and uncertainty in the global oil market, which in turn has impacted local fuel prices.
He noted “The prices of petroleum products are rising globally, and NNPCL, being a limited liability company, cannot continue to operate at a loss.”
The minister appealed for public understanding and patience in the face of the temporary challenges posed by the petrol price hike. He emphasized that, despite the immediate disruptions and hardships caused by the rise in fuel prices, the long-term prospects for a stable and affordable market remain positive.
