Tinubu Gov’t Distances Itself from Petrol Price Hike

The administration under President Bola Tinubu has distanced itself from the recent increase in petrol price, asserting that the decision was made autonomously by the Nigerian National Petroleum Company Limited (NNPCL) in response to current market dynamics. 

This price adjustment has resulted in petrol price skyrocketing to as much as ₦1,075 per litre in some parts of the country.

By mid-week, fuel price in Abuja had risen from ₦897 to ₦1,030 per litre, while Lagos witnessed an increase from ₦855 to ₦998.

Other regions experienced similarly sharp hikes, with the North-East seeing rates of ₦1,070, and the South-West averaging around ₦1,025.

In the South-East and South-South, petrol price escalated to ₦1,045 and ₦1,075, respectively.

The rapid increase has caused a public outcry, leading many to urge President Tinubu to step in and reverse the changes.

However, in an interview with Daily Trust,  the Minister of Information and National Orientation, Mohammed Idris, clarified that the government is not responsible for the price increase.

Idris pointed out that the NNPCL’s decision was influenced by multiple factors affecting the global energy sector, notably market instability triggered by ongoing conflicts in the Middle East.

He further stressed that the NNPCL, now operating as a limited liability company, can no longer continue to absorb financial losses incurred from previous fuel pricing models.

The minister elaborated, noting, “The price differences you’re seeing are a consequence of various factors.

One is the crisis in the Middle East, leading to volatility in the global market. As a result, petroleum prices are rising, consistent with trends seen in other parts of the world.

Additionally, as a limited liability company, the NNPCL cannot afford to bear these losses indefinitely, as it would otherwise operate at a loss.”

Idris appealed to Nigerians for understanding, explaining that the NNPCL and the government are navigating complex challenges.

He assured the public that fuel prices would stabilize over time.

He also highlighted that the removal of subsidies is designed to free up funds for reinvestment in crucial sectors such as healthcare, education, infrastructure, and national security.

Furthermore, the minister pointed out that initial government investments in Compressed Natural Gas (CNG) are expected to cushion the impact of the rising petrol costs, as more CNG operators enter the market.