Federal Government Denies Plans to Raise Petrol Prices

The Federal Government has addressed recent claims about a proposed increase in the price of petrol, officially known as premium motor spirit. There have been rumors suggesting that the Ministry of Petroleum directed the Nigerian National Petroleum Company Limited (NNPCL) to increase the price of fuel to N1,000 per litre, which would be well above the current approved rate.

In response, the government has strongly dismissed these claims as false and misleading. According to a statement released by Nnemaka Okafor, the government described these reports as “outright falsehoods” and “baseless fabrications” intended to create confusion and unrest within the oil industry. The statement underscored that the Federal Government has never engaged in or influenced the pricing policies of NNPCL.

The government explained that there has never been any instance where it interfered with petroleum pricing or issued directives for price increases. This position is consistent with the principles of deregulation in Nigeria’s petroleum sector. The government emphasized that any assertion to the contrary reflects a misunderstanding of the current regulatory framework governing the oil industry.

The statement further clarified that NNPCL operates as an independent entity, governed by the Companies and Allied Matters Act (CAMA). This legal framework grants NNPCL significant autonomy, including in its pricing decisions. The Ministry of Petroleum Resources does not, and will not, interfere in these internal decisions. The government has urged anyone with evidence supporting the claims of a price increase to come forward and present it publicly.

The government also highlighted that since the enactment of the Petroleum Industry Act (PIA) in 2021, NNPC has transitioned from being a government entity to a limited liability company. This change means that NNPCL is no longer a government agency and is thus not subject to direct governmental control or directives concerning its operations, including pricing policies.

By emphasizing the independent status of NNPCL and the non-interference policy of the Federal Government, the statement aimed to reassure the public and stakeholders in the petroleum sector. The government stressed that such misinformation not only disrupts the market but also undermines the progress made in the sector’s deregulation and transformation.

The Federal Government has firmly denied any involvement in the alleged fuel price increase, reinforcing its commitment to maintaining a clear separation between itself and the operational decisions of NNPCL.