Global market volatility cause of petrol price hike— FG distances self

The Federal Government has clarified that it is not responsible for the recent hike in the pump price of petrol, following widespread reactions from Nigerians urging President Bola Tinubu to reverse the increase.

 

Yesterday, Nigerian National Petroleum Company Limited, NNPCL, adjusted the pump price of fuel from N897 per litre to N1, 030 in Abuja; from N855 to N998 in Lagos.

 

Speaking with journalists, Minister of Information and National Orientation, Mohammed Idris, explained that the decision was made by the Nigerian National Petroleum Company Limited (NNPCL) due to prevailing conditions in the global energy market.

 

Idris emphasized that the federal government no longer controls the pricing of petroleum products, in line with the Petroleum Industry Act (PIA).

 

“The NNPCL made this decision based on market realities and not on any instruction from the government. Since the removal of the subsidy in May 2023, NNPCL has been absorbing the price differential to maintain the current range, but the company has now reached a point where it can no longer sustain those losses,” Idris stated.

 

He further attributed the price hike to external factors, including the ongoing crisis in the Middle East, which has caused market volatility. “The prices of petroleum products are rising globally, and NNPCL, being a limited liability company, cannot continue to operate at a loss,” he added.

 

The minister called for public understanding, assuring that despite the temporary challenges, the prices of petrol would eventually stabilize and come down in the future.

 

 

 

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