The Federal Government has distanced itself from the recent hike in the pump price of petrol, clarifying that the decision was made by the Nigerian National Petroleum Company Limited (NNPCL) and not under its directive.
On Wednesday, October 9, the NNPCL increased fuel prices across the country, with Abuja seeing a jump from N897 to N1,030 per litre. In Lagos, the price moved from N855 to N998, while in the North-East, it surged to N1,070. Other South-West states now pay N1,025, with the South-East at N1,045 and the South-South witnessing a rise to N1,075. The sharp hike has triggered widespread reactions, with many Nigerians urging President Bola Tinubu to take immediate action to reverse the increase.
However, in an interview with newsmen, Minister of Information and National Orientation, Mohammed Idris, stated that the government could not be held accountable for the recent fuel price surge. He explained that the NNPCL made the adjustment independently, based on market realities. “The government no longer has the power to fix petroleum prices as stipulated by the Petroleum Industry Act (PIA),” Idris emphasized. He further noted that NNPCL had previously been absorbing losses by keeping prices lower, but with the subsidy regime ending in May 2023, the company could no longer afford to do so.
Idris pointed to several factors contributing to the price hike, including market volatility caused by the ongoing crisis in the Middle East. He assured Nigerians that while the situation is challenging, the government and the NNPCL are working to stabilize prices in the long run. He urged the public to show patience and understanding, as the prices are expected to come down eventually.