The Federal Government has provided an explanation for the recent increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL), attributing it to global energy market conditions.
Speaking to journalists, Minister of Information and National Orientation, Mohammed Idris, clarified that the NNPCL’s decision was influenced by market forces, not government directives, in line with the Petroleum Industry Act (PIA).
Idris highlighted that the government no longer regulates petrol pricing, and NNPCL had been absorbing losses since the removal of fuel subsidies in May 2023.
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However, the company has now reached a point where it can no longer sustain these losses.
He further linked the price hike to external pressures, particularly the ongoing Middle East crisis, which has caused instability in global oil markets.
“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 said.
The minister urged the public to be patient, assuring them that despite the current challenges, petrol prices would eventually stabilize and decrease over time.
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