June 29 (THEWILL) — The Federal Government has reaffirmed its commitment to ensuring fairness and transparency in Nigeria’s downstream petroleum sector.
It said it is actively engaging petroleum marketers and industry regulators to address concerns over fuel pricing and ensure that changes in pump prices reflect prevailing global crude oil prices in a balanced manner.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this while responding to questions from journalists after Monday’s meeting of the Federal Executive Council (FEC) at the Presidential Villa, Abuja.
Oyedele said the government is consulting with petroleum marketers and regulatory agencies to establish a pricing regime that protects consumers without undermining the commercial viability of operators in the deregulated downstream market.
According to him, marketers often react quickly to increases in international crude oil prices by raising pump prices on the basis of replacement costs.
However, when crude prices decline, reductions at filling stations are usually delayed because marketers still have inventories purchased at higher costs.
He explained that the government’s objective is to strike a fair balance between allowing businesses to recover legitimate costs and preventing consumers from being subjected to exploitative pricing practices.
“We are engaging market participants and the regulators to ensure that pricing adjustments are fair to both operators and consumers,” Oyedele said
He stated that the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing pricing concerns within the legal framework provided by the Petroleum Industry Act (PIA).
Oyedele further highlighted several fiscal measures introduced by the Tinubu administration to cushion the impact of global energy price volatility on Nigerians.
These include the suspension of Value Added Tax (VAT), excise duty, and the surcharge on petroleum products.
According to him, the tax relief measures have helped moderate domestic fuel prices despite fluctuations in the international oil market, keeping Nigeria’s petrol prices comparatively lower than those in neighbouring countries.
The Minister also urged transport operators benefiting from the Federal Government’s investments under the Presidential Compressed Natural Gas (CNG) Initiative to pass on the resulting cost savings to commuters.
He noted that the government has invested significantly in subsidising vehicle conversion kits and expanding access to CNG as a cheaper alternative to petrol and diesel, stressing that transport fares should reflect the reduced operating costs.
Oyedele said operators who have converted their vehicles to CNG should not continue charging passengers fares based on petrol-powered operating costs, insisting that Nigerians deserve to benefit directly from the government’s intervention.
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