The Federal Government has ruled out any return to petrol subsidies or price controls despite mounting public outcry over rising fuel costs, with Finance Minister Wale Edun urging Nigerians to be thankful that the country now possesses the capacity to refine crude oil locally.
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Edun’s remarks came during an interview on Channels Television’s Politics Today on Wednesday, even as consumers and transporters across major cities lamented that pump prices remain stubbornly high despite a N100 per litre reduction in Dangote Petroleum Refinery’s gantry price.
The Dangote Refinery on Tuesday reduced its gantry price to N1,075 per litre, down from N1,175, following a drop in global crude oil prices to $88 per barrel from a peak of $110 per barrel. The decline was triggered by United States President Donald Trump’s declaration that the ongoing war involving the US, Iran and Israel would end soon, easing fears of prolonged disruptions to global oil supply.
While some major outlets responded with modest reductions — NNPC Retail dropped its pump price from N1,265 to N1,161 per litre, and AA Rano and AYM Sharfa reduced to N1,230 from N1,330 — most independent marketers in Abuja retained prices ranging from N1,300 to N1,355 per litre. In Lagos, filling stations sold petrol between N1,170 and N1,250 per litre depending on location, while depot prices across Lagos, Warri, Port Harcourt and Calabar ranged from N1,150 to N1,220 per litre.
The slow trickle-down has frustrated consumers. One commuter observed that depot owners and marketers are always quick to adjust prices upward but reluctant to pass savings to consumers. A motor bike operator identified as John Bassey said life had become extremely difficult for those in the transport sector, noting that commuters on fixed incomes cannot absorb exorbitant fares. A private car owner, Mr. Ola Salami, said he had parked his vehicle for weeks and was disappointed to find prices still high at filling stations despite Dangote’s reduction.
Minister Edun was emphatic that the government would not tamper with market-based pricing, describing it as a central reform of President Bola Tinubu’s administration.
“Rather than reverting back and taking a backward step, we will look at every other measure that can help the cost of living of Nigerians without resorting to non-market pricing,” Edun said, adding that intervention would only be considered as a last resort.
He pointed to the Dangote Refinery’s multiple price adjustments as evidence that the market mechanism was functioning. He noted that the refinery, Africa’s largest with a capacity of 650,000 barrels per day, had reduced its gantry price no fewer than eight times in 2025 alone, increasing it only twice.
As an immediate cushion, Edun said President Tinubu had announced 100,000 additional CNG conversion kits to enable vehicles switch to compressed natural gas, which costs roughly 25 to 30 per cent of the price of petrol.
In a statement, the Dangote Refinery said its latest price reduction was aimed at easing the burden on Nigerians, adding that its pricing structure remains sensitive to global market trends.
Managing Director David Bird assured that the refinery would continue to meet domestic fuel demand despite turbulence in global energy markets. He noted that while fuel import-dependent nations were experiencing panic buying and rationing, Nigeria would not face similar conditions because of the refinery’s commitment to ensuring nationwide availability.
Bird acknowledged that the refinery is not insulated from global price fluctuations, rising freight charges and increased insurance premiums, but emphasized that Nigeria now enjoys the significant advantage of a secure fuel supply driven by domestic refining capacity.
The fuel price volatility stems from the ongoing conflict involving the US, Iran and Israel, which has led to the shutdown of oil installations and a blockade of the Strait of Hormuz. Tehran has warned it would not allow a single litre of oil to pass through the Strait to reach the US, Israel and their partners, threatening that any vessel bound for those destinations would be a legitimate target.
The blockade triggered a sharp spike in global oil prices, with Brent crude reaching above $100 per barrel before declining to $92 following Trump’s assurance of an imminent end to the conflict. European ministers also met to discuss the release of oil reserves to tame price volatility.
In response, the International Energy Agency approved the release of 400 million barrels of oil — the largest emergency stock release in the agency’s history — unanimously backed by its 32 member states. IEA Executive Director Fatih Birol described the oil market challenges as unprecedented in scale.
Saudi Arabia has also begun ramping up flows through its East-West pipeline, pushing capacity from 2.8 million to nearly 7 million barrels per day to bypass the Strait of Hormuz. The UAE is similarly utilizing its Abu Dhabi Crude Oil Pipeline. However, even at full capacity, both pipelines would move less than half the crude that typically transits the Strait. Gulf producers without bypass alternatives, including Kuwait and Iraq, have already begun cutting production.
Despite the global uncertainty, Edun maintained an optimistic outlook on Nigeria’s economy, noting that the country has recorded exchange rate stability, rising external reserves, moderating inflation and improving growth.
He disclosed that Nigeria’s daily petrol demand stands at about 50 million litres and that local refiners have the capacity to meet that demand. He also highlighted ongoing economic reforms including subsidy removal, exchange rate unification, and social protection programmes reaching approximately 10 million households.
The minister acknowledged that persistent global inflationary pressures and geopolitical tensions could raise borrowing costs worldwide, including in Nigeria, but said the government’s Economic Management Team had already begun reviewing the possible consequences and would adjust policies where necessary.
The Executive Director of the Centre for Promotion of Private Enterprises, Dr. Muda Yusuf, commended Dangote Refinery’s price reduction and called on the government to continue encouraging domestic refining through coordinated trade, fiscal and monetary policy measures, including ensuring reliable crude supply, strengthening distribution infrastructure, and promoting export competitiveness for refined petroleum products.
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