The Federal Government has said it will not step in to control petrol prices, even as rising tensions in the Middle East stir instability in global oil markets.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, explained that the government will stick to market-based pricing for petroleum products, adding that any intervention would only happen as a last resort.
In an interview on Wednesday’s edition of Politics Today on Channels Television, Edun said, “Rather than now reverting back and taking a backward step, we will look at every other measure that can help the cost of living of Nigerians without resorting to non-market pricing.”
He said the current administration’s economic approach prioritises letting market forces set prices for fuel and foreign exchange, calling these reforms a key step by President Bola Tinubu to fix long-standing distortions in the economy.
“It is the market price. That is what has been instilled by Mr President that was missing for so long, market pricing of petroleum products,” Edun added.
While acknowledging that the Middle East crisis may influence global oil prices, Edun said the government plans to respond with targeted policies instead of direct price controls.
He cited the expansion of the compressed natural gas (CNG) programme as one way to ease transportation costs. “One of the ways the President immediately announced was 100,000 extra CNG conversion kits to enable vehicles to convert to CNG fuel, which is maybe 25 to 30 per cent of the cost of petrol,” he said.
Edun stressed that the government will continue to pursue initiatives that lower the cost of living without disturbing market pricing.
Asked if the government might act if petrol prices spike, he said, “Normally, given the policies and philosophy of this government, it would always have to be a last resort.”
He also pointed to Nigeria’s growing domestic refining capacity as a major strength amid global energy shocks.
Edun said Nigeria uses about 50 million litres of petrol daily, and local refineries, including the Dangote Refinery, have enough capacity to meet this demand. “Our demand is about 50 million litres per day, and the refiners say they can meet that demand, so we are in a relatively strong position,” he said.
He added that domestic refining has made Nigeria more resilient to global shocks that have forced some countries to ration fuel. “At this time, the resilience that the Nigerian economy has is coming largely from the fact that we do have that investment in refining,” Edun said.
Still, he acknowledged that geopolitical tensions could affect Nigeria indirectly through higher freight costs, rising global interest rates, and increased production expenses.
“You have gains on one side from higher oil prices, but you also have costs on the other side, particularly freight and other supply chain disruptions,” he said.
