ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has ruled out the return of fuel subsidies and the imposition of price controls despite rising global oil prices driven by tensions between the United States and Iran.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this during engagements with global investors in Paris, where he outlined Nigeria’s economic outlook and ongoing reforms.
In a statement, Oyedele said Nigeria would continue with its market-based approach, emphasising that the removal of fuel subsidies remains irreversible in order to avoid distortions in the economy.
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Petrol prices rose from about N200 per litre to over N500 after President Bola Tinubu declared that “the fuel subsidy is gone” during his inauguration speech on May 29, 2023. Since then, prices have continued to increase, climbing to N1,200 per litre in 2024 before interventions by the Dangote Petroleum Refinery.
Following operations at the Dangote refinery, fuel prices dropped to an average of N800 per litre until renewed Middle East tensions disrupted global oil supplies and triggered fresh increases.
The price of petrol has now risen above N1,300 per litre, further worsening inflationary pressures in the country.
“We will not bring back the fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market,” Oyedele said.