The federal government has responded to the recent increase in petrol prices announced by the Nigerian National Petroleum Company Limited (NNPCL), which has raised the price to N855 per litre.
On Wednesday, Bayo Onanuga, Special Adviser on Media and Strategy to President Bola Tinubu, explained the necessity of the price hike through his official X account. Onanuga attributed the increase to NNPCL’s substantial debt to petrol marketers, a situation stemming from the company’s efforts to shield Nigerian consumers from rising petrol costs.
Onanuga also refuted claims that the government misled citizens regarding the payment of fuel subsidies. He stated, “NNPC has recently highlighted that it can no longer sustain the price differential on its balance sheet without facing insolvency.” He emphasized the broader implications of the situation, noting that NNPCL’s financial difficulties have affected the Federation Account, impacting the ability of all three tiers of government to function effectively.
He further explained that the increase was a necessary measure to ensure the sustainability of NNPCL and the continuity of fuel supply. Onanuga expressed hope that the completion of the Dangote Refinery and other local refineries, including the government-owned Port Harcourt Refinery, would provide significant relief. He suggested that these refineries could improve the local fuel supply chain, create jobs, and benefit the national economy.
“This is the scenario that is unfolding,” Onanuga concluded, “and the game changer and big relief giver may well be the Dangote refinery and other local refineries, which will become the fuel suppliers to the local market.”
