The Federal Government says it is working with oil marketers and regulators to ensure that declines in global crude oil prices are reflected more transparently in the pump price of petrol across Nigeria.
Speaking to journalists after Monday’s Federal Executive Council (FEC) meeting chaired by President Bola Tinubu, Taiwo Oyedele, minister of finance and coordinating minister of the economy, said the government is seeking a balance between protecting consumers and ensuring downstream operators remain commercially viable.
According to Oyedele, marketers often increase pump prices quickly when crude oil prices rise because of replacement costs, but are slower to reduce prices when global crude prices fall, citing existing inventories.
“We are working to strike a balance between ensuring operators remain commercially viable and protecting Nigerians from unfair pricing,” he said.
His comments came a day after the Federal Competition and Consumer Protection Commission (FCCPC) criticised oil marketers for failing to fully pass on the benefits of falling global crude oil prices to consumers. The commission said recent reductions in petrol prices were not proportional to the sharp decline in international crude prices.
Oyedele said the FCCPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing the issue under the Petroleum Industry Act (PIA).
He added that the Tinubu administration has also suspended value-added tax (VAT), excise duty and the surcharge on petroleum products to help moderate domestic fuel prices.
According to the minister, petrol prices in neighbouring countries remain between 20 and 50 per cent higher because those taxes are still being applied.
Oyedele also urged transport operators participating in the Presidential Compressed Natural Gas (CNG) Initiative to transfer the benefits of lower operating costs to commuters rather than charging fares similar to petrol-powered vehicles.
He said the government had invested heavily in the CNG programme and called on stakeholders to ensure Nigerians enjoy the intended benefits.
The minister further disclosed that the FEC approved financing arrangements worth about $2.96 billion, €200 million and N215 billion for projects covering transportation, agriculture, power, infrastructure and micro, small and medium-sized enterprises (MSMEs).
The approvals include N215 billion for the Presidential CNG Initiative, $900 million for agriculture, $160 million for rural solar projects in Niger State, $1.2 billion for Section Two of the Sokoto–Badagry Super Highway, and €200 million alongside $500 million to expand access to credit for MSMEs through the Development Bank of Nigeria (DBN).
