See FG reasons for new fuel prices at filling stations and promises

• The Federal Government of Nigeria has reacted to the new petrol prices at filling stations across the country
• The government denied involvement in the changes made by the NNPC and independent marketers
• Nigerians have been asked to be patient, as there will be a reversal in fuel prices in the days ahead

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Federal Government has denied responsibility for the hike in the pump price of petrol at filling stations.

The Nigerian National Petroleum Company Limited (NNPCL) on Wednesday raised the pump price of fuel from N897 per litre to N1,030 in Abuja; and from N855 to N998 in Lagos.

FG denies involvement in new fuel price Photo credit: Bloomberg/contributor
Source: Getty Images

DailyTrust reports that petrol is N1,070 in the North-East, N1,025 in other South-West states, N1,045 in the South-East and N1,075 in the South-South.

FG names forces behind new fuel price

Mohammed Idris, the Minister of Information and National Orientation, has asked Nigerians not to hold the government responsible for the latest hike in petrol price.

According to him, the NNPCL decided to do so in response to market conditions in the energy industry.

He added that the decision of the NNPC was not made in any way by the federal government.

He stressed that the government can no longer fix prices of petroleum products in line with the provisions of the Petroleum Industry Act (PIA).

His words:

"The new petrol price 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."

The minister calls for patience from Nigerians assuring that in the long run, the prices would ultimately come down.

Marketers weigh Dangote petrol price with imported fuel

Legit.ng earlier reported that oil marketers in Nigeria would buy petrol directly from Dangote Refinery. However, they would face price challenges.

The reason was a price difference between Dangote petrol price and imported PMS.

While the Dangote Refinery can supply much of Nigeria’s domestic petrol needs, the government strictly controls pricing via the Nigerian National Petroleum Company Limited (NNPC), creating a significant hurdle for marketers.

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Source: Legit.ng