Presidency breaks silence over petrol price hike

The Federal Government has clarified that it is not responsible for the recent increase in the pump price of petrol.

This comes after the Nigerian National Petroleum Company Limited (NNPCL) raised the price of Premium Motor Spirit (PMS) on Wednesday, with significant hikes across the country.

Petrol prices have now surged from N897 to N1,030 per litre in Abuja, from N855 to N998 in Lagos, and up to N1,075 in South-South regions.

The North-East now faces prices as high as N1,070, while the South-East sees N1,045 and other South-West states face N1,025 per litre.

In response, the Minister of Information and National Orientation, Mohammed Idris, stated that the Federal Government did not influence NNPCL’s decision.

He explained that NNPCL’s actions were a response to current market conditions in the energy sector. Since the removal of fuel subsidies in May 2023, the government can no longer regulate fuel prices as per the Petroleum Industry Act (PIA).

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“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 appealed to Nigerians to understand the situation, assuring that prices would eventually decrease.