Nigeria’s Federal Government has ruled out any immediate plans to control petrol prices despite ongoing instability in the global oil market linked to rising tensions in the Middle East.
The Minister of Finance, Wale Edun, made this known during an interview on Channels Television on Wednesday.
He explained that instead of intervening in fuel pricing, the government intends to introduce measures aimed at easing the financial burden of higher energy costs on Nigerians.
According to Edun, the administration of Bola Tinubu is prioritizing alternative energy solutions, particularly expanding the use of compressed natural gas (CNG) for vehicles.
The government has already approved the distribution of 100,000 additional CNG conversion kits to encourage motorists to switch from petrol-powered vehicles.
He noted that CNG is significantly cheaper than petrol, costing roughly 25 to 30 percent of the price of conventional fuel, making it a more affordable option for transportation.
Edun stressed that government regulators typically step in only when there is clear market failure.
For now, he said, authorities will focus on managing the economic impact of fuel price fluctuations rather than reversing the country’s market-driven pricing policy.
Global oil prices have been volatile following the ongoing crisis in the Middle East.
Crude prices recently climbed above $100 per barrel on March 9 — the highest level recorded since July 2022 — before falling to about $87 the next day.
Earlier, the Federal Ministry of Finance Nigeria warned that the conflict could influence Nigeria’s oil and gas revenues, financial markets, capital flows, and the overall cost of global logistics and supply chains.
The surge in crude oil prices has also driven up petrol costs locally.
Rising ex-gantry prices have pushed pump prices higher nationwide, which in turn has increased transportation fares, with some routes reportedly seeing costs double.
Edun said price movements by private-sector players, including the Dangote Refinery, reflect normal market conditions under the deregulated fuel pricing framework.
Earlier this week, the refinery reduced its ex-gantry petrol price to ₦1,075 per litre after implementing several earlier increases. Despite this adjustment, retail prices at filling stations across the country remain elevated.
Commenting on the changes, the minister said such fluctuations are typical in a competitive market.
He added that Nigeria should be grateful for its growing ability to refine crude oil locally, which helps reduce reliance on imported petroleum products.
Edun also highlighted the role of private investment in strengthening Nigeria’s refining capacity, particularly the contribution of Aliko Dangote, whose refinery has begun supplying fuel to the domestic market.
He emphasized that supporting local refiners will be critical to ensuring stable fuel availability in the future.
Meanwhile, the African Democratic Congress has called on the government to introduce a temporary cap on petrol prices.
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The party argued that such a measure, even if short-term, could help shield consumers from further price hikes amid global energy uncertainty.