Petroleum pump price to be determined by global market – Minister of Finance

Nigeria’s Minister of Finance, Wale Edun has ruled out any form of intervention in the ongoing petroleum pump price, saying the market would be left for global market to determine rather than regulating the oil price.

Edun was reacting to the escalating oil market volatility as a result of the escalating war between United States, Israel and Iran which the gulf countries have come under Iran’s attack.

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Instead, the Minister said, government would rather introduce measures that would cushion the effect of price hike in the oil and gas industry as a result of crisis in the Middle East.

Edun said the government would pursue initiatives such as expanding the use of compressed natural gas for vehicles rather than interfering in market-driven pricing of petroleum products.

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According to him, President Bola Tinubu has already approved the provision of 100,000 additional compressed natural gas conversion kits to help motorists switch from petrol to CNG. He explained that CNG costs about 25 to 30 per cent of the price of petrol, making it a more affordable alternative.

Edun further stressed that government will try to manage the disruption given the fact that no one knows how long or short the crisis will take.

“But in the meantime, rather than reverting back and taking backward steps, we’ll look at every other measure that we have that can help the cost of living of Nigerians.”

CAPITAL POST reports that the crisis in the Middle East has triggered hike of petroleum and gas, particularly as fuel tankers cannot pass through the Straight of Hormuz to parts of the world.

Currently, Crude oil prices gone above $100 per barrel on March 9, the highest level since July 2022, before dropping to $87 the following day.

The hike in crude oil prices and rising ex-gantry petrol prices have led to increases in pump prices across the country. This has pushed up transportation costs, with fares reportedly doubling on some major routes. Edun noted that the price adjustments by private sector operators, including the Dangote refinery, reflect prevailing market realities.

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