The Federal Government has reiterated that the administration of President Bola Ahmed Tinubu will not return to the era of fuel subsidy, insisting that the policy had long created economic distortions in Nigeria.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, stated that the removal of subsidy remains a necessary reform to stabilise the economy and redirect public resources to more productive sectors.

Oyedele explained that the previous subsidy regime distorted market pricing and placed a heavy burden on government finances. He added that the current administration believes the petroleum market should be allowed to operate under free-market principles, where supply and demand determine prices.

According to him, attempts to control petrol prices through subsidies would reverse the gains already recorded in fiscal reforms and hinder ongoing efforts to strengthen economic efficiency and transparency.

He maintained that the government’s position is focused on long-term economic stability rather than short-term price control, stressing that market forces are better suited to regulate the petroleum sector.