Mohammed Idris, Minister of Information and National Orientation, has clarified that the recent increase in petrol prices was not initiated by the Federal Government.
He explained that the decision by the Nigerian National Petroleum Company Limited (NNPCL) was a response to the current conditions in the energy sector.
According to him, the Federal Government did not direct this action, as the current administration no longer regulates petroleum prices in accordance with the Petroleum Industry Act (PIA).
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Since the subsidy ended in May 2023, NNPC has been covering the price differential to maintain stability but can no longer sustain these losses.
“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 stated.
