Abuja, Oct. 10, 2024 – The Federal Government has blamed developments in the global oil market for the new fuel price hike in the country.
The Nigerian National Petroleum Corporation Ltd. (NNPCL) on Wednesday increased prices of petrol to between N998 and N1,030 per litre across the country.
Mohammed Idris, the Minister of Information and National Orientation, made the clarification in Abuja while briefing journalists.
He said the decision was based on market realities and not an instruction from the government.
“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.
“Secondly, NNPC cannot continue to absorb these losses for Nigeria because as a limited liability company, it would be operating at a loss.”
Idris particularly blamed the ongoing crisis on the Middle East for the market volatility.
“The prices of petroleum products are rising globally, and NNPCL, being a limited liability company, cannot continue to operate at a loss,” he said.
The minister appealed for public understanding of the issue and assured that the prices would eventually stabilise and come down in the future.
He said the federal government no longer controlled the pricing of petroleum products in line with the Petroleum Industry Act (PIA).
“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,” he said. (GBN)
