By Johnbosco Agbakwuru
The Federal Government on Monday reaffirmed its commitment to ensuring fairness in the downstream petroleum sector, saying it is engaging petroleum marketers and industry regulators to address concerns over fuel pricing and promote a more transparent pricing regime.
Fielding questions from State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said consultations are ongoing with market operators and regulators to ensure adjustments in pump prices reflect prevailing global crude oil prices in a fair and balanced manner.
He observed that while marketers often respond swiftly to increases in global crude oil prices by raising pump prices on the basis of replacement costs, reductions in prices tend to be slower because of existing stock purchased at higher costs. According to him, the government’s objective is to strike an appropriate balance between safeguarding the commercial sustainability of operators and protecting consumers from exploitative pricing practices.
Oyedele noted that the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are already addressing the issue within the framework of the Petroleum Industry Act (PIA).
