Nigeria’s Minister of Information and National Orientation, Mohammed Idris, clarified that the recent increase in petrol pump prices by the Nigerian National Petroleum Company (NNPC) Limited was not influenced by the Federal Government.
On Wednesday, NNPC raised petrol prices from N897 to N1,030 per litre in Abuja, N855 to N998 in Lagos, and N1,070 in the North-East, with similar increases in other regions, sparking public outrage.
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Speaking on Thursday, Idris explained that the NNPCL made the decision independently in response to current energy industry conditions. He stressed that under the Petroleum Industry Act (PIA), the government no longer has the authority to set fuel prices. He also noted that since the end of the petrol subsidy regime in May 2023, NNPCL had been absorbing some costs to keep prices stable but could no longer continue due to rising 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, NNPC 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, however, appealed to Nigerians for understanding, assuring them that the prices would eventually come down.
NLC Reacts As Fuel Price Hits N1,030 Per Litre
The Nigeria Labour Congress (NLC) has condemned the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, across the country.
In a statement signed by its president, Joe Ajaero, on Wednesday, the NLC demanded an immediate reversal of the price hike and criticized the government’s focus on raising fuel prices.
Ajaero also called on the government to clarify its plans for the future of the nation, while expressing disappointment with the Nigerian National Petroleum Corporation Limited (NNPCL) for its role in the price increase.
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“Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly. We challenge the government to go to the drawing board and present us with a blueprint for inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.
“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities. It will further deepen poverty as production capacities dip and more jobs are lost with multidimensional negative effects.
“In light of this, we urge the government to immediately reverse this rate hike as previous increases did not produce any good results. People only got poorer. But more fundamentally, the government should be bold enough to tell Nigerians in advance the destination it wants to take the country.”
Earlier, several NNPC stations in Abuja increased the retail price of petrol from N897 to N1,030 per litre.
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