The Federal Government has ruled out intervening to control petrol prices despite rising geopolitical tensions in the Middle East that are already pushing volatility in global oil markets.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government would not tamper with market-based pricing of petroleum products, stressing that intervention would only be considered as a last resort.
Speaking during an interview aired 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 explained that the current administration’s economic philosophy prioritises market-based pricing mechanisms for petroleum products and foreign exchange, describing them as key reforms introduced by President Bola Tinubu to remove 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 said.
He noted that while the Middle East crisis could affect global oil markets, the government would respond through targeted policy measures rather than price controls.
According to him, one immediate response has been the expansion of the compressed natural gas programme to cushion 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.
(Punch)
