The Nigerian government has reaffirmed its commitment to ensuring fairness in the downstream petroleum sector, saying it is engaging petroleum marketers and industry regulators to address concerns over fuel pricing and promote a more transparent pricing regime.
Responding to questions after Monday’s Federal Executive Council (FEC) meeting, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said consultations are ongoing with market operators and regulators to ensure adjustments in pump prices reflect prevailing global crude oil prices in a fair and balanced manner.
He observed that while marketers often respond swiftly to increases in global crude oil prices by raising pump prices on the basis of replacement costs, reductions in prices tend to be slower because of existing stock purchased at higher costs. According to him, the government’s objective is to strike an appropriate balance between safeguarding the commercial sustainability of operators and protecting consumers from exploitative pricing practices.
Oyedele noted that the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing the issue within the framework of the Petroleum Industry Act (PIA). He emphasised that fiscal measures introduced by the Tinubu administration, including the suspension of value added tax (VAT), excise duty, and the surcharge on petroleum products, have helped cushion the impact of global energy price increases, keeping fuel prices lower than those in neighbouring countries.
He also urged transport operators benefiting from the federal government’s investments in the Presidential Compressed Natural Gas (CNG) Initiative—including subsidised vehicle conversion kits—to pass the resulting cost savings on to commuters by offering more affordable transport fares rather than maintaining petrol-based pricing.
