The Federal Government has intensified efforts to bring down the retail price of Premium Motor Spirit (PMS), commonly known as petrol, by engaging key players in Nigeria’s downstream petroleum sector on the need for pump prices to reflect prevailing market realities.
At a closed-door meeting held in Abuja, government officials met with representatives of the Dangote Petroleum Refinery, major petroleum marketers, and regulatory agencies to discuss the recent decline in global crude oil prices and its expected impact on domestic fuel costs.
The meeting was attended by officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Federal Competition and Consumer Protection Commission (FCCPC), as well as other stakeholders in the oil and gas industry. Discussions centred on ensuring that Nigerian consumers benefit from lower international crude oil prices through corresponding reductions in petrol pump prices.
Speaking after the meeting, Minister of State for Petroleum Resources, Heineken Lokpobiri, said the principles of a deregulated petroleum market require that changes in global crude oil prices be reflected in the cost of refined petroleum products. He stressed that while the sector has been deregulated, consumers should not be subjected to unjustified or excessive pricing practices.
Lokpobiri noted that government agencies will continue to monitor developments within the downstream sector to ensure transparency, fairness and healthy competition among market operators, while protecting consumers from exploitative pricing.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority also urged fuel marketers to promptly adjust their retail prices where necessary, warning against using previously purchased fuel stocks as justification for maintaining higher pump prices despite reductions in ex-depot costs. The agency called on marketers to improve transparency in inventory management and pricing decisions to build public confidence in the deregulated market.
The meeting followed the recent decision by Dangote Petroleum Refinery to lower its ex-depot price for petrol, a move that has already prompted some filling stations across the country to reduce their pump prices. However, several marketers have expressed concerns that immediate price adjustments could result in financial losses, particularly for those with inventories purchased at higher prices.
Industry observers say the outcome of the engagement could influence fuel pricing in the coming weeks as stakeholders seek to balance market realities with consumer expectations. Many Nigerians are hopeful that sustained declines in global crude oil prices and increased local refining capacity will ultimately translate into more affordable petrol and reduced transportation costs nationwide.
