The Federal Government is currently working with petroleum marketers and industry regulators to establish a transparent pricing model for the downstream sector. This initiative aims to ensure that pump prices accurately reflect fluctuations in global crude oil costs while preventing consumer exploitation.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, explained that consultations are underway to balance the financial viability of businesses with the protection of citizens. He noted that while marketers are quick to raise prices when global costs increase, they often delay reductions due to existing stock holdings. Agencies like the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are actively managing these issues under the Petroleum Industry Act.
Oyedele emphasized that the administration of President Bola Tinubu has already implemented fiscal relief, including the suspension of VAT, excise duties, and surcharges on fuel. These interventions have kept domestic prices lower than those in surrounding nations. Additionally, the minister urged transport operators who have benefited from government-subsidized CNG conversion kits to reduce fares rather than charging rates equivalent to petrol-based travel.
