The Federal Government says it is working with petroleum marketers and industry regulators to ensure that declines in global crude oil prices are more accurately reflected in fuel prices across Nigeria.
Speaking after Monday’s Federal Executive Council (FEC) meeting chaired by President Bola Tinubu, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government is committed to protecting consumers while also ensuring that operators in the downstream petroleum sector remain financially sustainable.
He explained that fuel marketers often increase pump prices quickly when global crude oil prices rise because of replacement costs but are usually slower to reduce prices when crude prices fall, citing the need to clear existing stock purchased at higher prices.
According to the minister, the government is working to achieve a fair balance that prevents consumers from paying unnecessarily high prices while allowing businesses in the sector to operate profitably.
His comments come amid growing concerns over the slow adjustment of fuel prices despite the recent decline in international crude oil prices. The Federal Competition and Consumer Protection Commission (FCCPC) had recently criticized oil marketers for not passing on the full benefits of lower crude prices to consumers.
Edun said the FCCPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing the matter in line with the Petroleum Industry Act (PIA).
He added that the Tinubu administration has helped moderate domestic fuel prices by suspending value-added tax (VAT), excise duties, and surcharges on petroleum products, noting that neighbouring countries continue to record petrol prices that are between 20 and 50 percent higher because such taxes remain in place.
The minister also called on transport operators participating in the Presidential Compressed Natural Gas (CNG) Initiative to transfer the benefits of lower operating costs to passengers instead of maintaining fares comparable to petrol-powered vehicles.
He further disclosed that the Federal Executive Council approved financing packages valued at about $2.96 billion, €200 million, and N215 billion to support projects across key sectors, including transportation, agriculture, power, infrastructure, and micro, small and medium-sized enterprises (MSMEs).
The approved funding includes N215 billion for the Presidential CNG Initiative, $900 million for agriculture, $160 million for rural solar projects in Niger State, $1.2 billion for the second section of the Sokoto–Badagry Super Highway, and €200 million alongside $500 million to improve access to financing for MSMEs through the Development Bank of Nigeria.
