The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed petroleum marketers across the country to immediately reduce the pump prices of Premium Motor Spirit (PMS), commonly known as petrol, and other petroleum products in line with the recent decline in global oil prices.
Lokpobiri gave the directive on Monday while speaking at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja.
The forum, themed “Beyond Compliance: Certainty and Investment Confidence in Nigeria’s Petroleum Sector,” focused on strengthening Nigeria’s regulatory environment to attract long-term investments.
The minister noted that the easing of geopolitical tensions between Iran and the United States had contributed to a decline in international oil prices, making it necessary for marketers to pass the benefits on to consumers.
He, however, expressed concern that the expected reduction in the retail prices of petroleum products had yet to materialise, warning marketers against taking advantage of the deregulated market to make excessive profits.
According to Lokpobiri, while the deregulated petroleum market allows prices to respond to market forces, regulatory authorities still have a responsibility to prevent unfair practices and ensure that consumers are treated fairly.
He stressed that the provisions of the Petroleum Industry Act (PIA) 2021 empower regulators to ensure deregulation does not become a tool for profiteering at the expense of Nigerians.
“For too long, the dominant question in our regulatory conversations has been: are operators complying? That question matters. It will always matter. But it is no longer sufficient.
“The more consequential question today is this: are our regulatory authorities doing their job? Is it clear, consistent and predictable enough to give investors the confidence they need to commit capital, not just for one cycle, but for the long term?
“Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward,” he said.
The minister urged marketers to embrace fair pricing practices and ensure consumers benefit from prevailing market realities, while also calling on regulators to create a predictable regulatory environment capable of attracting sustained investment into the petroleum sector.
Lokpobiri described the full deregulation of the downstream sector by President Bola Tinubu’s administration as a landmark reform that had transformed Nigeria’s petroleum industry.
He said the policy had paved the way for the commencement of operations at the Dangote Refinery and encouraged the development of other refinery projects across the country.
According to him, deregulation has also eliminated the persistent fuel shortages that previously plagued the country.
“You can attest to the fact that since 2023 there has been availability of products in the country even with the recent challenges posed by the US-Israeli/Iranian conflict,” he said.
The minister also charged regulators to strengthen monitoring mechanisms to ensure consumers receive the exact quantity of fuel they pay for at filling stations.
“Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product?
“When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less,” he warned.
Lokpobiri further noted that investors increasingly favour countries with transparent, consistent and predictable regulatory frameworks, stressing that compliance alone is no longer enough to drive investment.
He described legal advisers and general counsel within the petroleum sector as strategic partners whose responsibilities go beyond legal interpretation to shaping investment decisions, improving regulatory policies and supporting national development.
He encouraged legal professionals to draw attention to regulations or guidelines capable of creating uncertainty and discouraging investors.
The minister said Nigeria’s petroleum industry is entering a new phase marked by expanding domestic refining capacity, greater private sector participation and growing opportunities across the midstream and downstream segments.
He added that sustaining the momentum would require policy consistency, transparent regulation, efficient dispute resolution and stronger collaboration among government agencies, regulators, industry operators and legal practitioners.
Lokpobiri expressed confidence that recommendations from the forum would strengthen governance, improve regulatory certainty and boost investor confidence in Nigeria’s petroleum sector.
