The Federal Government has said it will not impose price controls on petrol despite rising tensions in the Middle East that are pushing volatility in global crude oil markets.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the Tinubu administration remains committed to market-driven pricing for petroleum products, insisting that government intervention would only be considered as a last resort.
Edun made the clarification during an interview on Politics Today on Channels Television on Wednesday, noting that the government is focused on policies that ease the cost of living rather than reversing key economic reforms.
According to him, the current administration introduced market pricing for petrol and foreign exchange as part of broader economic restructuring aimed at removing distortions that had long affected the Nigerian economy.
The minister acknowledged that the escalating Middle East conflict could drive global oil prices higher, but maintained that Nigeria is in a relatively stronger position due to growing domestic refining capacity.
Edun explained that Nigeria’s daily petrol consumption stands at about 50 million litres, adding that local refiners, including the Dangote Refinery, have indicated the capacity to meet the country’s domestic demand.
He added that the government is also expanding the Compressed Natural Gas (CNG) programme to reduce transportation costs, with plans to distribute 100,000 additional CNG conversion kits to enable motorists switch from petrol to cheaper alternatives.
While Nigeria may benefit from higher crude prices through increased oil revenue, Edun cautioned that the country could also face higher freight costs, supply chain disruptions and global inflationary pressures if the Middle East crisis worsens.
He said the Economic Management Team is already reviewing the potential economic impact of the crisis and would adjust policies where necessary to sustain investor confidence and protect Nigerians from external shocks.