The Nigerian Government has said the decision of the Nigerian National Petroleum Company Limited, NNPCL, to increase petrol price to N1,030 per liter is based on economic realities.
The Minister of Information and National Orientation, Mohammed Idris said this on Thursday.
The NNPCL had on Wednesday increased fuel pump price to N1030 per liter in the Federal Capital Territory.
Reacting to the latest fuel price hike, the minister attributed it to global energy market conditions.
He clarified that the NNPCL’s decision was not influenced by the government but by market forces in line with the Petroleum Industry Act (PIA).
Idris highlighted that the government no longer regulates petrol pricing, and NNPCL had been absorbing losses since the removal of fuel subsidies in May 2023.
“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,” Idris said.
Nigeria Labour Congress, NLC, condemned the latest fuel price hike and called for immediate reversal.
Similarly, the Centre for the Promotion of Private Enterprise said that Nigeria is not ripe for complete deregulation of the Petroleum sector.
