The NNPCL had been paying differentials to maintain steady prices since the end of the subsidy scheme in May 2023, but the firm claimed it could no longer afford the financial losses.

The Nigerian government has disassociated itself from the latest surge in petrol prices, claiming it is not accountable for the increase.

According to a report published on Wednesday by SaharaReporters, the Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of fuel in the following areas: Abuja, where it was N897 per litre; Lagos, where it was N855 to N998; North-East, where it was N1,070; other South-West states, where it was N1,045; and South-South, where it was N1,075.

Nigerians have strongly criticised this decision and requested President Bola Tinubu to undo the price rise.

Mohammed Idris, Minister of Information and National Orientation, made it clear that the government is not to blame for the increase in petrol prices in an interview with Daily Trust.

Idris emphasised that the NNPCL operated independently of government orders and noted that the business took this decision in light of current conditions in the energy sector.

He pointed out that the Petroleum Industry Act (PIA) no longer permits the federal government to regulate the pricing of petroleum products.

The NNPCL had been paying differentials to maintain steady prices since the end of the subsidy scheme in May 2023, but the firm claimed it could no longer afford the financial losses.

“You’re observing a disparity that stems from various circumstances. The Middle East conflict is one of them. There exists market volatility. As a result, petroleum product prices are rising in line with what is happening with other industry participants throughout the world.

Second, because it would be running at a loss as a limited liability corporation, NNPC cannot continue to sustain these losses for Nigeria, he stated.

Idris assured that costs will soon go down and encouraged Nigerians to be understanding of the NNPCL and the government.

He reaffirmed the government’s pledge to put the money saved by eliminating subsidies into vital fields including infrastructure, security, healthcare, and education.

In addition, he said that the government’s early investments in compressed natural gas, or CNG, would lessen the effect of growing costs when additional providers enter the market.