The Federal Government has ruled out regulating petrol prices despite the sharp fluctuations in global oil markets triggered by the ongoing Middle East crisis.
Minister of Finance, Wale Edun, made the position known during an interview on Channels Television on Wednesday, March 11.
He said the government intends to address the economic impact of the conflict involving the United States, Israel, and Iran through alternative policies rather than direct price intervention.
Edun explained that the administration is focusing on initiatives that can reduce the cost burden on Nigerians while maintaining market-based pricing for petroleum products.
As part of these measures, he said President Bola Tinubu has approved the distribution of an additional 100,000 compressed natural gas conversion kits to encourage motorists to switch from petrol-powered vehicles to CNG.
According to him, the alternative fuel costs significantly less, estimated at about 25 to 30 percent of the price of petrol.
He emphasised that government regulators would only intervene in exceptional circumstances.
“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.
“But in the meantime, rather than reverting back and taking backward steps, we’ll look at every other measure that we have that can help the cost of living of Nigerians,” he added.
Global oil markets have experienced sharp swings since the outbreak of tensions in the Middle East.
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Crude prices climbed above $100 per barrel on March 9, marking the highest level since July 2022, before dropping to about $87 the following day.
The Ministry of Finance also noted on March 11 that the conflict could influence Nigeria’s crude oil and gas prices, affect financial market inflows, and increase global shipping and logistics costs.
Meanwhile, higher crude prices and rising ex-gantry petrol prices have pushed pump prices upward at filling stations across Nigeria. The increase has also led to higher transportation fares in several parts of the country.
Edun said recent adjustments by private fuel suppliers, including the Dangote Refinery, reflect the realities of a market-driven pricing system.
“Dangote reduced their price from, I think, around N1,200 to now just over N1,000 to N1,050, and that’s the dynamics of the market,” Edun said.
“But I think we should be thankful at this time for the capacity we have in Nigeria to refine crude into petrochemicals and petroleum products.
“America is just now rushing to open another refinery. Pakistan, Thailand, in the absence of that capacity, they’re almost closing down their economies and societies, schools, and sending people home,” he said.
The finance minister said the stability currently observed in Nigeria’s fuel supply is partly due to the expansion of domestic refining capacity, particularly through investments by Aliko Dangote, president of the Dangote Group.
He added that supporting local refiners is critical to maintaining consistent supply, noting that several countries provide similar backing to their refining industries.
His remarks come shortly after the African Democratic Congress called on the government to introduce a temporary cap on petrol prices to prevent further increases that could worsen living conditions for Nigerians.