The federal government says it will not intervene to regulate petrol prices despite rising volatility in global oil markets triggered by escalating tensions in the Middle East.
Speaking on Wednesday during an interview with Channels TV, Wale Edun, Nigeria’s minister of finance, said the government would instead introduce alternative measures to cushion the economic impact of the conflict involving the United States, Israel, and Iran.
Edun said the administration of Bola Tinubu is focused on supporting market-driven pricing while deploying relief initiatives to ease the cost of living for Nigerians.
According to him, the president has already approved the distribution of 100,000 additional compressed natural gas (CNG) conversion kits to help motorists switch from petrol to CNG, which he said costs about 25 to 30 percent of petrol prices.
He explained that the government prefers such interventions rather than direct price controls.
“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.
“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.”
Oil market shock
The Middle East crisis has rattled global energy markets. Crude oil prices surged above $100 per barrel on March 9, the highest level since July 2022, before easing to about $87 the next day.
Earlier, Nigeria’s finance ministry warned that the conflict could affect the country’s oil and gas prices, capital flows into financial markets, and global logistics and supply costs.
The spike in crude prices has already filtered into the domestic fuel market. Retail petrol prices at filling stations have climbed sharply, with transport fares doubling on some major routes across Nigeria.
Market forces driving refinery prices
Edun also defended recent petrol price adjustments by private operators, particularly the Dangote Refinery owned by Aliko Dangote.
On Tuesday, the refinery reduced its ex-gantry petrol price to ₦1,075 per litre after implementing three earlier increases, though pump prices remain elevated nationwide.
The minister said such changes reflect normal market dynamics under the new pricing system introduced by the government.
“Dangote reduced their price from around ₦1,200 to just over ₦1,000 to ₦1,050, and that’s the dynamics of the market,” he said.
Edun added that Nigeria’s growing refining capacity is helping the economy remain resilient during global shocks.
He noted that several countries without local refining capacity have struggled with severe disruptions during the crisis.
“We should be thankful for the capacity we now have in Nigeria to refine crude into petrochemicals and petroleum products,” he said.
Call for petrol price cap
Meanwhile, the African Democratic Congress (ADC) has urged the government to introduce a temporary petrol price cap to prevent further increases that could deepen Nigeria’s cost-of-living crisis.
However, the federal government has maintained that market-based pricing remains the best approach, while promising targeted measures to soften the economic impact on citizens.
