The Federal Government has ruled out a return to fuel subsidies and the introduction of price control despite rising global oil prices triggered by tensions between the United States and Iran.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, spoke during engagements with global investors in Paris, where he highlighted Nigeria’s economic outlook and reform trajectory.

In a statement, Oyedele said Nigeria would maintain its market-driven approach, stressing that subsidy removal remains irreversible to prevent distortions in the economy.

From around N200 per litre, petrol prices jumped above N500 when President Bola Tinubu announced that “the fuel subsidy is gone” during his inaugural speech on 29 May 2023. Since then, the price has been on an upward swing, hitting N1,200 in 2024 before the Dangote Petroleum Refinery’s interventions.

With the Dangote refinery, fuel prices were reduced to an average of N800 per litre until the Middle East tension caused disruptions in global oil supplies and triggered price hikes.

A litre of petrol has now jumped above N1,300 a litre, affecting the country’s inflation figures negatively.

“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.