The Minister of Information and National Orientation, Mohammed Idris, has addressed concerns surrounding the recent increase in petrol prices, stating that the federal government did not initiate the hike. The price rise, implemented by NNPC Ltd and various marketers, has left many Nigerians feeling frustrated.
Idris explained that the decision made by NNPC Ltd was a reaction to prevailing conditions in the energy sector. He emphasized that the federal government did not give any directive for this price adjustment, as the current administration no longer regulates petroleum prices, in line with the Petroleum Industry Act (PIA).
The minister noted that since the subsidy was removed in May 2023, NNPC Ltd had been covering the price differential to maintain stability. However, the company can no longer sustain these losses.
“The differential you’re seeing is a result of various factors, including the ongoing crisis in the Middle East,” Idris stated. He highlighted that market volatility is causing petroleum prices to rise, which aligns with trends seen among other industry operators worldwide.
Furthermore, Idris explained that NNPC Ltd, as a limited liability company, cannot continue absorbing losses indefinitely. The government’s stance underscores the challenges faced by the energy sector and the implications for consumers.
Related topic:
Can a Gasoline Engine Run on Diesel? [Revealed]
