The federal government has responded to the hike in petrol price by the Nigerian National Petroleum Company Limited (NNPCL).
In its announcement of the increase on Tuesday, NNPCL revealed that it had been hiked to N855 per litre.
Speaking via his official X account on Wednesday, the Special Adviser on Media and Strategy to President Bola Tinubu, Bayo Onanuga stated why the increment was inevitable.
Onanuga pointed out that NNPCL’s indebtedness to petrol marketers was a result of the company bearing the rising cost of petrol to protect Nigerian consumers.
Speaking further, he denied reports of the federal government deceiving citizens on the payment of subsidy for petroleum products.
“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent,” he said.
“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.
“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.
“That is the scenario that is unfolding, 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.
“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain,” Onanuga penned.
