Nigeria stands firm on petrol pricing despite Middle East oil volatility

An energy economist, Prof. Wumi Iledare, has advised the Federal Government to prioritise stable fuel supply over price control to ensure economic stability.

He said this approach remains vital as geopolitical tensions in the Middle East continue to disrupt global oil markets and trigger volatility.

Iledare, Professor Emeritus of Petroleum Economics at Louisiana State University, spoke in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.

What he is saying

He warned that attempts to suppress fuel prices artificially could deepen market distortions and worsen long-term economic vulnerabilities.

"In times like these, supply security is more critical than price control. Government must ensure access to multiple supply sources while providing clear, consistent regulatory signals that reduce speculation and volatility,"

Iledare said.

He noted that initiatives such as crude-for-naira deals and structured fuel imports could offer temporary relief if properly implemented.

These mechanisms can serve as short-term shock absorbers but must be transparent, time-bound, and efficiently implemented.

Most importantly, any cost savings must translate into lower pump prices for Nigerians, he added.

Iledare emphasised that a liberalised market still requires strong government oversight to ensure fairness and protect vulnerable citizens.

A deregulated market is not a lawless market. Government must provide credible regulation, enforce competition, and deliver targeted social protection-not blanket subsidies that distort pricing and strain public finances.

Backstory

Some oil marketers have also said the FG should focus on providing relief for citizens rather than regulating fuel prices.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, told our facebook last week that the government can intervene in the fuel crisis by providing palliatives in the area of transportation.

He maintained that market forces determine the price of fuel.

He noted that more CNG and electric vehicle charging stations are needed in the country.

What you should know

The Federal Government has reaffirmed its commitment to market-based petrol pricing, saying it will not introduce price controls despite rising geopolitical tensions in the Middle East that have heightened volatility in global oil markets.

The Minister of Finance, Wale Edun, said this during an interview on Channels Television earlier in March.

According to the minister, the administration will explore alternative ways to ease the cost-of-living pressure on Nigerians rather than reversing key market reforms.

He explained that the Tinubu administration's economic strategy is anchored on market-driven pricing for petroleum products and foreign exchange-reforms introduced to eliminate distortions that had persisted for years.