The federal government has opened talks with major players in Nigeria’s downstream petroleum sector to address concerns over the pricing of Premium Motor Spirit (PMS), insisting that the benefits of declining global crude oil prices should be reflected in pump prices for consumers.
The meeting, held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought together key industry stakeholders, including Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Speaking at the session, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said the engagement was convened at the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to promote cost-reflective and fair pricing of petrol across the country.
Umar explained that the government was not seeking to impose prices on operators but rather to work collaboratively with industry stakeholders to identify challenges affecting the market and develop sustainable solutions.
According to him, the dialogue is expected to examine issues surrounding market surveillance, inventory management and strategies for strengthening the National Strategic Stock (NSS), a mechanism aimed at safeguarding Nigeria’s energy security.
“We want to engage in an open, transparent and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, look into inventory management and align on how we can collectively accelerate key mechanisms like the National Strategic Stock to protect our national energy security,” he said.
He urged participants to contribute constructively towards finding a balanced approach that would sustain business profitability while ensuring consumers receive fair treatment.
“I urge everyone present to engage constructively. Let us work together to find a balanced path forward that keeps your businesses viable while ensuring that the public is fairly protected,” Umar added.
The NMDPRA boss noted that the international oil market had experienced significant fluctuations over the past six months due to geopolitical tensions and global conflicts, resulting in elevated crude oil prices.
However, he said the easing of those tensions had recently triggered a moderation in global crude prices, creating expectations that domestic petrol prices should also decline.
Despite the reduction in international crude prices, Umar observed that retail prices of PMS in Nigeria had not adjusted accordingly, a development the regulator considers a matter requiring urgent engagement with industry operators.
“As a responsible Regulatory Authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices,” he said.
He reiterated that the administration of President Bola Tinubu remains committed to a deregulated and competitive petroleum market but stressed that deregulation should not be exploited to the detriment of consumers.
According to him, the government’s market reforms are designed to encourage efficiency, attract investment and create a pricing environment that delivers value to both businesses and the public.
“President Bola Ahmed Tinubu has laid a resilient foundation for a deregulated, competitive and investment-driven market. But let me be clear: deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value and protect the public interest,” Umar stated.
He further maintained that the interests of marketers and consumers can coexist, stressing that a transparent downstream market is essential to ensuring that reductions in operational and replacement costs are transferred to Nigerians promptly.
“We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” he added.
The meeting comes amid growing public expectations that petrol prices should ease following recent declines in global crude oil prices, with industry stakeholders expected to continue consultations on measures that would enhance transparency and strengthen confidence in Nigeria’s deregulated downstream petroleum market.
