By Ayo Kehinde
The Federal Government of Nigeria has ruled out any plan to regulate petrol prices despite growing concerns over the impact of escalating tensions in the Middle East on global oil markets.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the government’s position known on Wednesday while speaking on Politics Today, a current affairs programme on Channels Television.
Edun said the administration of President Bola Tinubu would not interfere with the market-based pricing of petroleum products, even as global oil prices react to the ongoing tensions involving the United States, Israel and Iran. Instead, the government plans to deploy alternative measures aimed at cushioning the impact of potential fuel price increases on Nigerians.
According to the minister, one of the immediate responses announced by President Tinubu is the provision of 100,000 additional compressed natural gas (CNG) conversion kits to enable more vehicles to switch from petrol to CNG.
Edun explained that CNG is significantly cheaper than petrol, costing between 25 and 30 percent of the price of the conventional fuel, making it a more affordable option for motorists and transport operators.
“In response to the global developments, Mr President has already announced the provision of 100,000 additional CNG conversion kits”, he said, adding that the government would continue to roll out similar initiatives designed to mitigate the impact of external shocks on the economy without reversing ongoing market reforms.
“When there is market failure, 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 is. But in the meantime, rather than reverting and taking backward steps, we’ll look at every other measure that we have that can help the cost of living of Nigerians”, Edun said.
The minister’s remarks come amid fears that the geopolitical tensions in the Middle East could trigger further volatility in global crude oil prices, with potential implications for fuel prices and inflation in Nigeria.
