FG Announces Decision on Fuel Pricing in Nigeria, NNPC Adjusts Pump Rates
- The FG has said it will not intervene to control petrol prices despite rising tensions in the Middle East
- Wale Edun the Minister of Finance said the government will continue to allow market forces to determine the price
- He added that intervention in fuel pricing would only be considered as a last resort if all other policy options fail
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has said it will not intervene to control petrol prices despite rising tensions in the Middle East that are creating uncertainty in the global oil market.
This was disclosed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Source: Twitter
According to him, the government would continue to allow market forces determine the price of petroleum products, stressing that intervention would only be considered as a last resort.
Edun who spoke on Wednesday, March 11 during an interview on Politics Today, a programme on Channels Television said the economic direction of the administration of Bola Ahmed Tinubu is built on market-based reforms, particularly in fuel pricing and foreign exchange management.
Edun said:
“Rather than now reverting back and taking a backward step, we will look at every other measure that can help the cost of living of Nigerians without resorting to non-market pricing."
He explained that allowing petrol prices to be determined by market forces was a key reform introduced by the present administration to correct long-standing distortions in the Nigerian economy, the Nation reports.
He said:
“It is the market price. That is what has been instilled by Mr President that was missing for so long, market pricing of petroleum products."
Edun acknowledged that the ongoing crisis in the Middle East could still affect global oil markets but noted that the government would respond through policies aimed at easing the impact on Nigerians rather than fixing fuel prices.
CNG deployment in Nigeria
One of such measures, he said, is the expansion of the compressed natural gas (CNG) programme to reduce transportation costs.
According to him, the government has approved additional support to accelerate the conversion of vehicles from petrol to CNG.
Edun added:
“One of the ways the President immediately announced was 100,000 extra CNG conversion kits to enable vehicles convert to CNG fuel, which is maybe 25 to 30% of the cost of petrol."
He added that the government would continue to explore ways to reduce the cost of living without interfering with market pricing.
When asked whether authorities could step in if petrol prices rise sharply, Edun said intervention would only happen under extreme circumstances.
He said:
“Normally, given the policies and philosophy of this government, it would always have to be a last resort."
Source: Getty Images
The minister also pointed to Nigeria’s growing local refining capacity as a major factor that could help the country withstand shocks in the global energy market.
He said Nigeria consumes about 50 million litres of petrol daily and that local refineries now have the capacity to meet that demand.
he said:
“Our demand is about 50 million litres per day and the refiners say they can meet that demand, so 5 a relatively strong position."
Among the facilities contributing to this capacity is the Dangote Refinery, alongside other emerging refining projects across the country.
NNPC adjusts pump rates
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has reversed its most recent petrol price increase.
NNPCL filling stations in Abuja reduced the pump price of Premium Motor Spirit (PMS) to N1,161 per litre. In some locations, such as Herbert Macaulay Way, NNPC retail outlets are dispensing petrol at N1,081 per litre.
In Lagos, petrol prices have also dropped by over N180 at NNPC filling stations to N1,130 per litre
Source: Legit.ng
