Middle East war: FG will not regulate petrol prices, says Edun
The federal government says it will not intervene to control petrol prices despite rising tensions in the Middle East that are affecting global oil markets.
Speaking in an interview with Channels Television on Wednesday, Wale Edun, minister of finance, said the government would instead introduce measures to reduce the impact of the conflict involving the United States, Israel, and Iran.
Edun said Bola Ahmed Tinubu had already announced the distribution of 100,000 additional compressed natural gas (CNG) conversion kits to help vehicle owners switch to CNG, which costs about 25 to 30 percent of the price of petrol.
According to him, the government prefers to adopt such initiatives rather than interfere with market pricing.
“When there is market failure, that is when the regulator steps in. But regarding pricing, what we want to do is manage the disruption because we do not know how permanent or temporary it could be,” Edun said.
“In the meantime, rather than taking backward steps, we will look at every measure available to reduce the cost of living for Nigerians.”
The ongoing Middle East conflict has caused significant volatility in global markets. Crude oil prices rose above $100 per barrel on March 9, the highest level since July 2022, before dropping to about $87 the following day.
On March 11, the finance ministry warned that the crisis could affect Nigeria’s crude oil and gas prices, capital flows in financial markets, as well as global logistics and supply costs.
Following the rise in crude oil prices and ex-gantry petrol prices, pump prices at filling stations have also increased, with transport fares doubling on some major routes across the country.
Refinery prices reflect market forces
Edun said petrol price adjustments by private operators, including the Dangote Refinery, are influenced by prevailing market conditions.
On Tuesday, the refinery reduced its ex-gantry petrol price to N1,075 per litre after implementing three earlier increases, although pump prices remain high.
The minister said the current pricing pattern reflects the market based petroleum system introduced by the Tinubu administration.
“Dangote reduced the price from around N1,200 to just above N1,000, and that shows how the market works,” he said.
Edun added that Nigeria’s ability to refine crude locally has helped cushion the economic impact of global disruptions.
He said the resilience seen in the economy is partly due to private sector investment in refining, particularly by Aliko Dangote, president of the Dangote Group.
The minister emphasised the need to support domestic refiners to ensure steady fuel supply, noting that other countries also support their refining industries.
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 for Nigerians.
