The federal government has said it is engaging petroleum marketers and industry regulators to address concerns over fuel pricing and ensure the market operates fairly.
Responding to questions after Monday’s Federal Executive Council (FEC) meeting, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said discussions were ongoing with operators and regulators on how fuel prices are adjusted in response to changes in global crude oil prices.
He noted that marketers often increase pump prices quickly when crude oil prices rise, citing replacement costs, but are generally slower to reduce prices when costs fall because of existing inventory.
According to him, the government is working to strike a balance between ensuring operators remain commercially viable and protecting Nigerians from unfair pricing.
He said the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing the issue under the Petroleum Industry Act.
On concerns that government interventions have not significantly reduced transportation costs, Oyedele said measures introduced by the Tinubu administration had helped cushion the impact of rising global energy prices.
He noted that President Bola Tinubu had suspended Value Added Tax (VAT), excise duty and the surcharge on petroleum products, adding that fuel prices in neighbouring countries are between 20 and 50 per cent higher than in Nigeria because those taxes remain in place.
The minister also urged transport operators benefiting from government investments in compressed natural gas (CNG), including subsidised vehicle conversion kits, to pass the savings on to commuters instead of charging the same fares as petrol-powered vehicles.
He said government had made significant investments in the CNG programme and called on all stakeholders to play their part in ensuring Nigerians benefit from the intervention.
