We didn’t ask NNPC to sell fuel above approved pump price — FG

The Federal Government has strongly denied recent media reports claiming that the Ministry of Petroleum has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell fuel at ₦1000 per litre, well above the approved pump price.

These reports suggested that the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had given the nod for this price hike, possibly, following his comments at the 2024 Energy and Labour Summit in Abuja.

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During the summit, Lokpobiri remarked on the challenges posed by smuggling, stating, “If NNPC imports PMS and sells to marketers at perhaps ₦600 or below, there’s no way that smuggling can stop.” He highlighted the persistent issue of smuggling, even suggesting that deploying law enforcement might not suffice in curbing the problem due to the lucrative margins smugglers enjoy.

These comments were quickly misconstrued on social media, leading to rumours that the Federal Government had sanctioned a significant increase in fuel prices. However, in a statement released on Tuesday and signed by Nneamaka Okafor, the government categorically dismissed these claims as “baseless, malicious, and a deliberate attempt to incite public discontent.”

Okafor clarified, “There was never a time the FG interfered with petroleum pricing at NNPCL, let alone give directives for a price increment.” She went on to challenge those spreading these rumours, stating, “We challenge anyone in possession of any evidence – be it written documents, audio, or video recordings – that supports these fabrications to make it public.”

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The statement further stressed that the NNPCL operates independently under the Companies and Allied Matters Act (CAMA), with decisions made by its fully empowered Board of Directors. “The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPCL, including pricing matters. Any suggestion otherwise is not only incorrect but also reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector,” Okafor added.

The Federal Government also reminded the public that since the Petroleum Industry Act (PIA) was signed into law in 2021, NNPCL has transitioned from a government entity to a limited liability company. As such, its operations and decisions are not subject to federal government directives, including those concerning pricing.