The federal government has ruled out intervening to regulate petrol prices despite rising volatility in global oil markets triggered by the ongoing Middle East conflict.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government would instead pursue alternative measures to cushion the impact of higher fuel costs on Nigerians rather than interfere with market pricing.
Speaking during an interview on Channels Television on Wednesday, Edun explained that government intervention in pricing would only occur in cases of clear market failure.
He said the administration of President Bola Ahmed Tinubu is focusing on managing the disruption caused by global developments while maintaining the current market-based pricing system.
“When there is market failure is where the regulator steps in. But in terms of balancing pricing, what we are looking to do is to manage the disruption, and we don’t know how permanent or temporary it could be,” Edun said.
According to the minister, the government has already announced the distribution of 100,000 additional compressed natural gas (CNG) conversion kits to enable more vehicles switch to CNG, which costs roughly 25 to 30 percent of petrol prices.
The Middle East crisis recently pushed global crude oil prices above $100 per barrel on March 9 — the highest level since July 2022 — before easing to about $87 the following day.
Rising crude prices have contributed to increases in petrol prices in Nigeria, with pump prices climbing at filling stations across the country and transport fares doubling on some routes.
Edun also noted that recent adjustments in petrol prices by private operators, including the Dangote Refinery owned by Aliko Dangote, reflect prevailing market conditions.
On Tuesday, the refinery reduced its ex-gantry petrol price to ₦1,075 per litre after implementing three earlier increases, although retail pump prices remain elevated.
The minister said the introduction of market-driven pricing under Tinubu’s administration means fuel prices could move both upward and downward depending on prevailing conditions.
Edun added that Nigeria’s growing domestic refining capacity, particularly from Dangote’s refinery, is helping strengthen the resilience of the economy amid global supply disruptions.
He stressed the need for the country to support local refiners to ensure a stable supply of petroleum products.
Meanwhile, the African Democratic Congress (ADC) has urged the federal government to introduce a temporary cap on petrol prices to prevent further increases that could worsen the cost-of-living crisis facing many Nigerians.