**insists tax waivers have cushioned subsidy removal impact, urges CNG operators to cut transport fares

The Federal Government on Monday said it is intensifying consultations with petroleum marketers and industry regulators to curb arbitrary fuel pricing and ensure Nigerians benefit more quickly whenever global crude oil prices decline.

The government said the engagement is aimed at promoting transparency in the downstream petroleum sector while balancing the commercial interests of fuel marketers with consumer protection.

Speaking with State House Correspondents after the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already working within the framework of the Petroleum Industry Act (PIA) to address concerns over pump price adjustments.

He observed that marketers often respond immediately to increases in international crude oil prices by raising pump prices based on replacement costs but are slower to reduce prices when crude prices fall, citing old inventories purchased at higher costs.

According to the minister, government is working to ensure that market forces are not used to exploit consumers while allowing operators to remain commercially viable.

“We’ve had several meetings with operators and regulators. Typically, when crude oil prices rise, marketers adjust pump prices almost immediately because of replacement costs. However, when prices decline, reductions at the pumps are often delayed because of claims of unsold old stock. That is the balance we are trying to achieve,” he said.

“We do not want businesses to go under, but we also cannot allow Nigerians to be exploited. That responsibility lies with the regulators, and there is already an ongoing process to address it.”

Oyedele noted that both the FCCPC and the NMDPRA have the statutory responsibility under the Petroleum Industry Act to ensure that fuel prices remain market-reflective without encouraging anti-consumer practices.

The minister also defended the Tinubu administration’s post-subsidy policies, arguing that government interventions have substantially moderated the impact of rising global energy prices on Nigerians.

He explained that the suspension of Value Added Tax (VAT), excise duty and other levies on petroleum products has prevented domestic fuel prices from rising even higher despite fluctuations in the international oil market.

“Some have asked what Nigeria is doing while other countries reduce taxes on fuel. In our case, those taxes have already been suspended. Mr. President approved the suspension of VAT, excise duty and the surcharge on petroleum products. Without those measures, pump prices would have been significantly higher than they are today,” he said.

Oyedele added that although transportation costs remain elevated, government interventions have helped cushion the effects of subsidy removal and shield consumers from steeper increases.

He also called on transport operators benefiting from the Presidential Compressed Natural Gas (CNG) Initiative to transfer the savings from cheaper fuel to commuters instead of maintaining petrol-based fares.

According to him, the Federal Government has invested heavily in subsidising CNG conversion kits and expanding alternative fuel infrastructure to reduce transportation costs.

“It is not enough to convert to CNG and continue charging passengers the same fares as petrol-powered vehicles. The savings should be passed on to Nigerians. If everyone plays their part with honesty and patriotism, the benefits of these reforms will be felt much faster,” the minister said.