The recent hike in price of fuel is a great source of concern to Nigerians.

However, the Federal Government has said it is not responsible for the hike in the pump price of petrol.

How Fuel Price Hike May Force Salary IncreaseOn Wednesday October 9, the Nigerian National Petroleum Company Limited (NNPCL) hiked the pump price of fuel from ₦897 per litre to ₦1, 030 in Abuja, ₦855 to ₦998 in Lagos, ₦1, 070 in North-East, ₦1,025 in other South-West states, ₦1,045 in South-East and ₦1,075 in South-South.

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Furthermore, this triggered reactions among Nigerians who asked President Bola Tinubu to work towards reversing the increment.

However, in a chat with Daily Trust, the Minister of Information and National Orientation, Mohammed Idris, said the government should not be held responsible for the latest hike in petrol prices.

Iris explained that the NNPCL made the decision in response to prevailing circumstances in the energy industry.

In addition, he emphasised 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).

Crisis In The Middle East

Also, he said with the subsidy regime ending in 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.

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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.

Also Read: Fuel Price Hike: See Why Rotimi Amaechi Blames Nigerians

The minister 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.

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