The Federal Government has intensified efforts to ensure that Nigerians benefit from the recent decline in global crude oil prices by urging petroleum marketers to lower the pump price of Premium Motor Spirit (PMS).
The call was made on Monday during a high-level stakeholders’ meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. The meeting brought together regulators, oil marketers, representatives of Dangote Refinery, and other key players in the downstream petroleum sector to discuss strategies for reducing fuel prices while sustaining investments in the industry.
Speaking ahead of the closed-door session, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the government preferred dialogue and collaboration over price regulation. He stressed that with global crude oil prices falling significantly, consumers should also enjoy the benefits through lower petrol prices.
Lokpobiri noted that marketers increased fuel prices when crude oil traded at about $118 per barrel. With Brent crude now below $70 per barrel, he said there was every reason for pump prices to reflect the changing market conditions.
He explained that although the downstream petroleum sector is deregulated, the Petroleum Industry Act (PIA) empowers the government to promote fair pricing and safeguard consumers from exploitative practices.
The Chief Executive of NMDPRA, Rabiu Umar, said the meeting was convened to address the gap between declining international crude oil prices and the relatively high retail cost of petrol across the country.
According to him, global oil prices have moderated following the easing of geopolitical tensions, yet the reductions have not been fully reflected at filling stations. He pointed to the recent drop in the price of Liquefied Petroleum Gas (LPG) as evidence that constructive engagement between regulators and industry operators can produce tangible benefits for consumers.
IPMAN Assures Nigerians of More Price Cuts
President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Elijah Shettima, assured Nigerians that petrol prices would continue to decline as the cost of sourcing products falls.
Shettima said the association’s priority is to secure direct access to petroleum products from Dangote Refinery, describing the arrangement as a major step toward improving supply and reducing pump prices nationwide. He added that where necessary, independent marketers should also be allowed to import petroleum products directly.
He urged the Federal Government to continue supporting local refining, maintaining that expanding domestic refining capacity remains the most sustainable solution for achieving stable and affordable fuel prices.
According to him, independent marketers have already reduced petrol prices by approximately ₦125 per litre across the country and are prepared to implement further reductions as procurement costs continue to decline.
Shettima said marketers remain committed to making fuel more affordable while maintaining sustainable business operations. He added that if depot prices continue to fall, petrol prices will be adjusted accordingly.
On the possibility of petrol selling for ₦900 per litre or even lower, Shettima said the outcome would depend on prevailing depot prices. He expressed optimism that under favourable market conditions, the pump price could drop below ₦800 per litre.
The stakeholders’ meeting was attended by representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Major Energies Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other key operators in the downstream petroleum industry.
