The Federal Government has distanced itself from the hike in the pump price of petrol.
DAILY NIGERIAN reports that the Nigerian National Petroleum Company Limited, NNPCL, had jerked up fuel price from N897 per litre to N1, 030 in Abuja and from N855 to N998 in Lagos.
The price is now N1, 070 in the North-East; N1,025 in other South-West states; N1,045 in the South-East; and N1,075 in the South-South region.
The decision triggered further condensation and criticism of the economic policies of the administration of President Bola Tinubu.
The critics argued that the administration had made negative impact in the lives of citizens since the removal of petroleum subsidy and floating of the Naira in 2023.
Other prominent Nigerians, including labour union leaders had asked Mr Tinubu to immediately reverse the increment.
But in a chat with Daily Trust, Minister of Information and National Orientation, Mohammed Idris, said the government should not be held responsible for the latest hike in petrol prices.
He explained that the NNPCL made the decision in response to prevailing circumstances in the energy industry, emphasising that it did not act on any instruction from the federal government, as the government can no longer fix prices of petroleum products, in line with the provisions of the Petroleum Industry Act, PIA.
He said with the subsidy regime ending since May 2023, the NNPCL had only been paying differential to keep the price within the range it had been, but the company said it could no longer absorb the 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, NNPCL 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, therefore, urged Nigerians to continue to show understanding with the NNPCL and the government, assuring that in the long run the prices would ultimately come down.
He said the government would continue to invest the savings from the removal of subsidy to improve other critical sectors like healthcare, education, infrastructure, and security.
He added that the initial investments of the government in CNG would also ameliorate the impact even as more operators invest.
