The Federal Government says it is engaging oil marketers and industry regulators to ensure that declines in global crude oil prices are reflected more transparently in the pump price of petrol across the country.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while briefing journalists after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu on Monday.
According to Oyedele, the government is working to strike a balance between protecting consumers from excessive fuel prices and ensuring operators in the downstream petroleum sector remain commercially viable.
He noted that marketers are often quick to increase pump prices whenever global crude oil prices rise, citing replacement costs, but tend to delay price reductions when crude prices fall because they are still selling existing stock purchased at higher prices.
“We are working to strike a balance between ensuring operators remain commercially viable and protecting Nigerians from unfair pricing,” Oyedele said.
The minister’s remarks come a day after the Federal Competition and Consumer Protection Commission (FCCPC) criticised oil marketers for failing to adequately transfer the benefits of declining international crude oil prices to consumers.
The commission argued that although some reductions had been made at filling stations, the cuts did not reflect the magnitude of the recent drop in global crude prices, raising concerns about pricing practices in the downstream sector.
Oyedele reiterated the government’s commitment to fostering a transparent and competitive petroleum market while ensuring Nigerians enjoy fair pricing as global market conditions evolve.
