FG opens up on major reason for increase in petrol price in Nigeria

The federal government of Nigeria has stated that it no longer determines petrol price.

The federal government has cleared president Muhammadu Buhari of any blame that mark the end of the increase in prices of petrol.

Minister of state for petroleum resources, Timipre Sylva, says the power to determine the price of petrol no longer resides with Buhari.

OnyxNews Nigeria can recall that the Petroleum Products Marketing Company (PPMC) had announced N151.56 as the ex-depot price. The ex-depot price is the price at which petroleum products are sold to marketers at depots. Marketers are expected to then add their profit margin to the ex-depot price and determine the retail price.

In line with the increment from N138.62 to N151.56, petrol marketers raised the petrol price from N148 to between N158 and N162 per litre.

According to Sylva on Thursday, there will not be an upward review of petrol prices left for president Buhari.

This online news platform gathered that the Minister of state for petroleum resources also said that federal government is not in charge of fixing the prices of petroleum products in the Nigeria.

He added that it is unfortunate that citizens are blaming the government for the increase, and the focus of the authorities is to protect the interest of citizens.

“Government is no longer in the business of fixing prices for petroleum products, we have stepped back,” he said while speaking to reporters in Abuja. Adding, “Our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering.”

He added that President Muhammadu Buhari will not knowingly introduce any policy that will further aggravate the situation of ordinary Nigerians, especially the poor.

“Left for him, he will never allow the increase in pump price; for this to happen, it means that it is an inevitable decision. COVID-19 took the price of crude oil to zero zone.”

Sylva said the government cut crude production from two million barrels to 1.412 million barrels per day.

The minister said that the deregulation of the sector has been fraught with political undertone.

“Deregulation will definitely come with few pains, but survival of the country is paramount,” he said.