The Nigerian National Petroleum Company Limited (NNPCL) announced a significant increase in fuel prices, which has led to widespread public dissatisfaction.
The Minister of Information and National Orientation, Mohammed Idris, addressed this issue on October 10, clarifying that the Federal Government should not be held accountable for the price hike.
He emphasized that the decision was made independently by the NNPCL due to prevailing challenges in the energy sector.
Idris pointed out that the increase in petrol prices is a consequence of market dynamics and not a directive from the government. He cited the Petroleum Industry Act (PIA), which limits governmental control over petrol pricing, as a key factor in this development. Since the end of the petrol subsidy regime in May 2023, the NNPCL had been absorbing the cost differentials but could no longer sustain these financial losses.
The minister explained that the current price adjustments are influenced by global factors, including market volatility and crises in the Middle East. He stated, “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.”
While the minister assured that fuel prices would eventually decrease, he appealed to Nigerians for understanding during this transition period.
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