The Federal Government, on Monday, convened a high-level meeting with key
stakeholders in the downstream petroleum sector to address concerns over the
pricing of Premium Motor Spirit (PMS), insisting that the benefits of lower
global crude oil prices should be reflected in pump prices.
The meeting, held at the headquarters of the Nigerian Midstream and
Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought
together representatives of Dangote Refinery, the Federal Competition and
Consumer Protection Commission (FCCPC), the Petroleum Products Retail
Outlets Owners Association of Nigeria (PETROAN), and other industry
stakeholders.
Speaking at the meeting, the Chief Executive of the NMDPRA, Rabiu Umar,
said the engagement was aimed at fostering collaboration rather than imposing
price controls, stressing that the regulator was committed to ensuring a
transparent and efficient downstream market.
According to him, the meeting was convened at the directive of the Minister of
State for Petroleum Resources (Oil), Heineken Lokpobiri, to examine issues
surrounding cost-reflective and fair pricing of petrol across the country.
“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 (NSS) to protect our national energy security,”
Umar said.
He urged participants to work together in finding practical solutions that would
sustain businesses while protecting consumers from unfair pricing.
“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,” he added.
Umar noted that the international crude oil market had witnessed significant
volatility over the past six months, driven largely by geopolitical tensions and
global conflicts. However, he said the easing of those tensions had recently led
to a moderation in crude oil prices.
Despite the decline in international prices, he observed that domestic retail
petrol prices had not adjusted accordingly.
“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.
The NMDPRA boss reiterated the federal government’s commitment to a
deregulated and competitive petroleum market, saying deregulation should not
be exploited to the detriment of consumers.
“President 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,” he said.
He stressed that marketers’ profitability and consumer welfare should go hand
in hand, calling for a transparent pricing framework that ensures market gains
are passed on to Nigerians without unnecessary delays.
“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,” Umar said.
The meeting comes amid growing public expectations that domestic petrol
prices will decline following recent moderation in global crude oil prices and
increased local refining capacity. Industry stakeholders are expected to continue
consultations on measures that will promote fair competition, market efficiency
and improved energy security.