The latest increase in the price of petrol did not just bring the Nigerian National Petroleum Company (NNPC) under heavy criticism from Nigerians, but it left the President Tinubu-led government in the mix of the chaos......See Full Story>>.....See Full Story>>
Of course, to many people, it is the president of the country that should be held responsible for whatever goes wrong in the country.
The criticism that trailed this recent increase was so much that the Federal Government had to speak up.
Now, the President Bola Tinubu-led government has distanced itself from the recent hike in petrol prices.
To the presidency, the NNPC reached the decision independently based on prevailing market conditions.
The adjustment has seen pump prices soar to as high as ₦1,075 per litre in some regions.
This surge in fuel prices has sparked widespread outrage among Nigerians.
As a matter of fact, many people, associations and unions have called for President Bola Tinubu to intervene and reverse the increase.
Notably, the Nigerian Labour Congress (NLC) President, Joe Ajaero condemned the increase.
The union urged the government to reverse the increase immediately.
However, in an interview, Minister of Information and National Orientation, Mohammed Idris, clarified that the government should not be held accountable for the price hike.
Idris explained that the NNPCL’s decision was influenced by various factors affecting the energy industry, including ongoing volatility in the global market, particularly due to crises in the Middle East.
He emphasised that the NNPCL is no longer in a position to absorb the financial losses incurred from previous price settings.
The minister said: “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 urged Nigerians to understand the complexities faced by the NNPCL and the government, assuring that, in the long run, prices would eventually stabilise.
Meanwhile, he highlighted that savings from the subsidy removal would be reinvested into critical sectors such as healthcare, education, infrastructure, and security.
Furthermore, the minister mentioned that with the Compressed Natural Gas (CNG) initiative by the FG, the impact of rising fuel prices will reduce.