FG Rules Out Petrol Price Regulation Amid Middle East Tensions
The federal government has ruled out regulating petrol prices despite rising tensions in the Middle East sending global oil markets into turmoil.
Finance Minister Wale Edun, speaking to Channels Television on Wednesday, said the government plans to roll out alternative measures to cushion Nigerians from the impact of the conflict involving the United States, Israel, and Iran.
Edun highlighted that President Bola Tinubu has already approved the provision of 100,000 additional compressed natural gas (CNG) conversion kits to enable vehicles to switch to the cheaper fuel, which costs roughly 25 to 30 per cent of petrol’s price.
He said the government would pursue such initiatives “rather than interfering with an orderly market pricing.”
“When there is market failure, that is when the regulator steps in. But in terms of balancing pricing, what we are looking to do is manage the disruption, which may be temporary or permanent,” Edun explained.
He added, “In the meantime, instead of taking backward steps, we will explore every available measure to ease the cost of living for Nigerians.”
The Middle East conflict has caused sharp volatility in global markets, with crude oil prices surging past $100 per barrel on March 9, the highest since July 2022, before falling to $87 the next day.
The Finance Ministry warned on March 11 that the war could affect Nigeria’s crude oil and gas prices, financial market capital flows, and global logistics and supply costs.
The spike in crude oil and ex-gantry petrol prices has seen pump prices soar, forcing transport fares to double on some major routes in the country.
Edun noted that petrol price adjustments by private operators, particularly Dangote refinery, mirror prevailing market conditions.
On Tuesday, Dangote reduced its ex-gantry petrol price to N1,075 per litre after three previous hikes, although retail prices remain high.
The minister said President Tinubu’s market-based pricing policy — long absent in Nigeria — ensures the market moves dynamically.
“Dangote reduced their price from around N1,200 to just over N1,000 to N1,050. That is the market in action,” he said.
Edun added that Nigeria’s current economic resilience stems from private sector investment in refining, particularly by Aliko Dangote.
He urged the country to support its refiners, just as other nations support theirs, to maintain a steady supply of petroleum products.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
Related posts:
Middle East Tensions: US Orders Non-Emergency Staff To Leave Bahrain, Jordan, Iraq
NNPC Insists No Increase In Petrol Depot Price, As PPPRA Deletes Petrol Increase Template
Petrol Price Increases To N212 per litre 11 Days After NNPC Denied Price Hike
Pressure Mounts On Ladoja To Accept Beaded Crown Amid Ibadan Succession Tensions
