The Federal Government has stated that it is not responsible for the recent increase in petrol prices.
On October 9, the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of fuel, bringing it to N1,030 per litre in Abuja, N998 in Lagos (up from N855), N1,070 in the North-East, N1,025 in other South-West states, N1,045 in the South-East, and N1,075 in the South-South.
This price hike prompted reactions from Nigerians, who urged President Bola Tinubu to take action to reverse the increase.
In an interview with Daily Trust, Minister of Information and National Orientation, Mohammed Idris, clarified that the government should not be blamed for the rise in petrol prices. He explained that the NNPCL made the decision based on current conditions in the energy sector and that it acted independently, without government direction.
According to the Petroleum Industry Act (PIA), the government no longer regulates fuel prices.
Idris noted that following the end of the subsidy regime in May 2023, the NNPCL had been covering the price differential but could no longer sustain these losses. He attributed the price increase to various factors, including ongoing crises in the Middle East and overall market volatility.
He said: “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, NNPC cannot continue to absorb these losses for Nigeria because as a limited liability company, it would be operating at a loss.”
He reassured Nigerians that the government would invest savings from subsidy removal into critical sectors such as healthcare, education, infrastructure, and security.
Furthermore, he mentioned that initial government investments in compressed natural gas (CNG) would help mitigate the impact of rising fuel prices as more operators enter the market.
