FG Rejects Fixing Petrol Prices Despite Middle East Tensions

The federal government has ruled out intervening to control petrol prices despite rising geopolitical tensions in the Middle East that are already causing 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 on Politics Today on Channels Television on Wednesday, Edun said the administration remained committed to market-driven economic policies.

“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.

According to him, the current administration’s economic philosophy prioritises market-based pricing for petroleum products and foreign exchange, describing them as key reforms introduced by President Bola Tinubu to remove 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.

He noted that although the Middle East crisis could affect global oil markets, the government would respond through targeted policy measures rather than price controls.

Edun said one immediate intervention announced by the President was the expansion of the compressed natural gas programme, including the provision of 100,000 additional CNG conversion kits to help reduce 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.

The minister also highlighted Nigeria’s growing domestic refining capacity as a major buffer against global energy shocks, noting that the country’s daily petrol demand of about 50 million litres could be met by local refiners, including the Dangote Refinery.

“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,” Edun said.

He acknowledged, however, that geopolitical tensions could still impact Nigeria through rising freight costs, higher global interest rates and disruptions in supply chains.

Despite these risks, Edun maintained that the Nigerian economy has shown resilience, citing improvements in exchange rate stability, rising external reserves, moderating inflation and economic growth.

He added that reforms introduced by the Tinubu administration, including subsidy removal and exchange rate unification, have helped stabilise the economy despite the difficult fiscal conditions inherited by the government.