ADC Urges FG to Cap Petrol Prices as Global Oil Market Volatility Bites

ADC Urges FG to Cap Petrol Prices as Global Oil Market Volatility Bites

The African Democratic Congress (ADC) has called on the Federal Government to introduce a temporary and time-bound cap on petrol prices to prevent further increases that could worsen the cost-of-living crisis in Nigeria.

In a statement issued on Wednesday, the party’s National Publicity Secretary, Bolaji Abdullahi, said the recent hikes in petrol prices in Nigeria reflect rising volatility in the global oil market, largely driven by escalating tensions in the Middle East.

“The African Democratic Congress calls on the Federal Government to immediately introduce a temporary and time-bound cap on petrol prices to prevent further increases that continue to push the cost of living beyond the reach of millions of Nigerians,” Abdullahi said.

He noted that the ongoing Middle East crisis has triggered instability in global energy markets, which is now affecting domestic fuel prices and worsening economic hardship for Nigerians.

According to the opposition party, external shocks should not be used to justify allowing fuel prices to rise unchecked, particularly in what it described as a fragile economy still grappling with the consequences of subsidy removal.

ADC said the current situation has deepened the economic pressure on households following the fuel subsidy removal announced by Bola Ahmed Tinubu during his inauguration on May 29, 2023.

Nigeria eventually exited under-recovery payments when the government fully deregulated the downstream petroleum sector in October 2024, allowing market forces to determine petrol pricing.

The party argued that the government must take urgent steps to protect citizens from further shocks, warning that rising fuel costs are already affecting transportation, food prices and the overall cost of doing business.

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The call comes as the Middle East conflict continues to create unprecedented volatility in global energy markets. International crude oil prices briefly crossed $100 per barrel on Monday, the highest level since July 2022, before easing to around $87 per barrel on Tuesday.

Iran has also warned that global oil prices could surge further, even threatening that crude prices may climb toward $200 per barrel if tensions escalate and shipping through the Strait of Hormuz — one of the world’s most critical oil transit routes — is disrupted.

The Strait of Hormuz is a strategic waterway through which roughly 20 percent of global oil shipments pass daily, linking the Persian Gulf to the Gulf of Oman and the Arabian Sea.

In Nigeria, the surge in crude oil prices has pushed up ex-gantry petrol prices and retail pump prices across filling stations nationwide.

Transport operators have already begun increasing fares on major routes in cities such as Lagos, Abuja and Kano, with commuters reporting that fares have doubled on some routes.

Meanwhile, the Dangote Petroleum Refinery on Tuesday announced a reduction in its ex-gantry petrol price to ₦1,075 per litre after implementing three previous increases amid global market pressures.

Despite the reduction at the refinery level, pump prices at retail filling stations remain elevated, reflecting the broader impact of global oil market fluctuations and distribution costs.

ADC warned that unless urgent intervention measures are introduced, rising petrol prices and transport costs could accelerate inflation and worsen the economic burden on millions of Nigerians already facing high food and energy costs.

The party urged the Federal Government to adopt immediate measures to stabilise the domestic fuel market while also pursuing long-term reforms to strengthen Nigeria’s energy security and refining capacity.

ADC Urges FG to Cap Petrol Prices as Global Oil Market Volatility Bites