FG Moves to Cut Fuel Prices, Engages Marketers Over Pump Price Adjustments

FG Moves to Cut Fuel Prices, Engages Marketers Over Pump Price Adjustments

The Federal Government says it's engaging petroleum marketers to address fuel pricing concerns and ensure Nigerian citizens benefit from falling global crude oil prices.

Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, revealed this while responding to questions from journalists after the Federal Executive Council (FEC) meeting in Abuja.

‘We are engaging with marketers and regulators to ensure there is fairness in the market while also recognising the commercial realities operators face,' he said.

The Federal Competition and Consumer Protection Commission (FCCPC) raised concerns that recent reductions in global crude oil prices had not translated into corresponding cuts in fuel prices across the country. The commission warned that it would not hesitate to sanction businesses found engaging in exploitative pricing or other anti-competitive practices in the deregulated downstream market.

Nigerians currently pay lower petrol prices compared to neighboring countries, where taxes are still applied. Responding to concerns that government interventions have yet to significantly reduce transportation costs, Oyedele said measures introduced by the President Bola Tinubu administration had helped cushion the effects of volatility in global energy prices.

He noted that the government suspended the Value Added Tax (VAT), excise duty, and other charges on petroleum products to reduce costs for consumers. Petrol prices in neighboring countries remain between 20 and 50 percent higher than in Nigeria because such taxes are still applied there.

Oyedele urged transport operators benefiting from the Federal Government’s compressed natural gas (CNG) initiative to pass the savings on to commuters. He said that despite receiving subsidised vehicle conversion kits and other government support, some operators continued to charge the same fares as petrol-powered vehicles.

The minister stated that the government had made substantial investments in the CNG programme to lower transportation costs and reduce dependence on petrol. He urged beneficiaries of the initiative to play their part by ensuring Nigerians enjoy the intended benefits of the government’s intervention.

The government's engagement with petroleum marketers may bring some relief to Nigerian citizens, who have been complaining about rising fuel prices despite the drop in global crude oil prices.