FG Won’t Control Petrol Prices Despite Middle East War – Edun

(AFRICAN EXAMINER) – The Federal Government says it will not intervene to regulate petrol prices despite rising tensions in the Middle East that are causing instability in global oil markets.

The Minister of Finance, Wale Edun, made this known during an interview on Channels Television on Wednesday.

According to him, the government will instead introduce other measures to reduce the impact of rising fuel costs on Nigerians.

Edun explained that in response to the war involving the United States, Israel, and Iran, President Bola Ahmed Tinubu has already approved the distribution of 100,000 additional compressed natural gas conversion kits.

The kits will enable vehicles to switch from petrol to compressed natural gas (CNG), which costs about 25 to 30 per cent of the price of petrol.

He said the government prefers such initiatives instead of interfering with market-driven fuel pricing.

According to Edun, government intervention in pricing only happens when there is market failure.

“When there is market failure, that is when the regulator steps in. But in terms of balancing pricing, what we are looking to do is manage the disruption because we don’t know how permanent or temporary it could be,” he said.

He added that the government will continue exploring measures that can help reduce the cost of living for Nigerians without reversing current economic reforms.

The Middle East conflict has already created volatility in global oil markets. Crude oil prices rose above 100 dollars per barrel on March 9, the highest level since July 2022, before dropping to around 87 dollars the following day.

On March 11, the finance ministry warned that the conflict could affect Nigeria’s crude oil and gas prices, financial market capital flows, and global logistics costs.

Following the rise in crude oil prices and ex-gantry petrol prices, pump prices at filling stations have also increased, causing transport fares to rise across several routes in Nigeria.

Edun also said the pricing decisions by private refiners, especially Dangote Refinery, reflect prevailing market conditions.

Earlier this week, the refinery reduced its ex-gantry petrol price to N1,075 per litre after implementing three previous increases, although retail pump prices remain high.

According to the minister, the country is benefiting from its new refining capacity, particularly investments made by Aliko Dangote, president of Dangote Group.

He noted that Nigeria must support its local refiners to maintain steady fuel supply, just as other countries support their refining industries.

Meanwhile, the African Democratic Congress has urged the government to introduce a temporary cap on petrol prices to prevent further increases that could worsen the cost of living for Nigerians.su

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