Minister Mohammed Idris clarifies that NNPCL’s decision reflects global market conditions, not government directives.
On Wednesday, Nigeria’s Minister of Information and National Orientation, Mohammed Idris, stated that the federal government should not be blamed for the recent increase in petrol prices. The decision, he explained, was made by the Nigerian National Petroleum Company Limited (NNPCL) in response to global energy market dynamics and not under any directive from the government.
Idris emphasized that under the provisions of the Petroleum Industry Act (PIA), the government no longer sets the prices of petroleum products. Since the end of the fuel subsidy regime in May 2023, the NNPCL had been absorbing the price differential to keep petrol prices stable. However, due to mounting losses, the company announced it could no longer sustain this practice.
“The differential you’re seeing is a result of several factors, including the crisis in the Middle East and volatility in the global oil market,” Idris stated. “NNPCL, as a limited liability company, cannot continue operating at a loss by absorbing these costs.”
The minister urged Nigerians to remain patient and assured that petrol prices would eventually stabilize. He also highlighted the government’s commitment to reinvest savings from the subsidy removal into critical sectors such as healthcare, education, infrastructure, and security.
Idris added that ongoing investments in Compressed Natural Gas (CNG) and increased participation from private operators would help mitigate the impact of the price hike on Nigerians.
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