The Federal Government has said it will not step in to regulate petrol prices despite rising volatility in global oil markets triggered by escalating geopolitical tensions in the Middle East.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this during an interview with Channels Television on Wednesday.
According to Edun, the administration of Bola Tinubu would instead focus on alternative measures aimed at cushioning the impact of rising fuel costs on Nigerians rather than directly interfering with petrol pricing.
He explained that the government’s approach is to support market-driven pricing while introducing initiatives that can ease transportation costs and the broader cost of living.
As part of those efforts, Edun said the president had already approved the rollout of an additional 100,000 compressed natural gas conversion kits to enable more vehicles switch from petrol to CNG.
The initiative is being implemented under the Presidential Initiative on Compressed Natural Gas to accelerate the adoption of cleaner and cheaper fuel alternatives.
According to the minister, CNG currently costs between 25 and 30 per cent of the price of petrol, making it a more affordable option for motorists.
Edun stressed that government intervention in pricing would only occur in cases where there is clear market failure.
“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,” he said.
He added that rather than reversing ongoing economic reforms, the government would continue to explore policies that help reduce the cost of living for Nigerians while allowing the fuel market to operate efficiently.
