Reduce petrol price, FG tels marketers

The Federal Government has urged petroleum marketers to reflect the recent decline in international crude oil prices in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, while reiterating that fuel pricing remains subject to market forces under Nigeria’s deregulated downstream petroleum sector.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the call on Monday in Abuja during the 2026 General Counsel and Legal Advisers’ Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He spoke just as consumers and stakeholders have faulted the alleged profiteering action by marketers following the recent drop in the global crude oil price.

The minister said the easing of geopolitical tensions between Iran and the United States had led to expectations of lower international crude oil prices, which should ordinarily translate into a reduction in the prices of petrol and other petroleum products in the domestic market.

“Following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” Lokpobiri said.

He expressed optimism that market dynamics would eventually bring prices into equilibrium but maintained that regulators must ensure deregulation is not exploited to the detriment of consumers.

“While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act (PIA),” he stated.

Lokpobiri stressed that the Federal Government no longer has the power to fix or reduce petrol prices following the deregulation of the downstream petroleum sector under the Petroleum Industry Act (PIA) 2021.

According to him, fuel prices are now determined by market forces, making competition, supply and demand the primary factors influencing pump prices.

He, however, said the Nigerian Midstream and Downstream Petroleum Regulatory Authority has a statutory responsibility to monitor operators and ensure that consumers are protected from unfair pricing practices.

The minister said the deregulation policy has already delivered significant gains for the petroleum sector, including improved product availability and renewed investment in domestic refining.

He noted that the policy created the environment that enabled the commencement of operations at the Dangote Refinery while encouraging the development of other refinery projects across the country.

Lokpobiri also said the era of persistent fuel shortages has largely ended, noting that Nigerians have enjoyed relatively stable product availability since 2023 despite disruptions in the international oil market caused by geopolitical tensions.

“It also ensured that artificial scarcity has become a thing of the past. You can attest to the fact that since 2023 there has been availability of product in the country even with the recent challenges posed by the US-Iran conflict,” he said.

Speaking at the forum, the Authority Chief Executive of the NMDPRA, represented by Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Rabiu Abdullahi Umar, said implementation of the Petroleum Industry Act has entered a new phase where the focus is shifting from legislation to practical implementation.

He said regulators, legal practitioners and corporate advisers all have important roles to play in ensuring compliance with the law and promoting investor confidence in Nigeria’s petroleum industry.

“When the Authority established the General Counsel and Legal Advisers Forum, it did so in recognition of a simple reality that effective regulation cannot be achieved through regulations alone,” Umar said.

“The most carefully drafted law, the most comprehensive regulation, and the most robust compliance framework ultimately depend on people for their implementation.”

Also speaking, the Authority’s Secretary and Legal Adviser, Dr. Joseph Tolorunse, said regulatory certainty remains critical to attracting investment and sustaining growth in the petroleum sector.

…Consumers back sanctions against marketers

It would be recalled that the Federal Competition and Consumer Protection Commission (FCCPC) on Sunday threatened action against fuel marketers making undue profit margin in spite of the downward movement of the prices of crude oil.

Warning oil marketers to desist or face sanctions, the FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, said a review of gantry prices by refiners, depot operators and retail outlets showed price cuts that were not commensurate with the decline in international crude prices.

He further stated that market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment.

He added: “Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”

Daily Trust reports that crude prices stood at $73.12 on Monday from the peak of $120 per barrel in April due to a ceasefire accord between the U.S. and Iran two weeks ago and the reopening of the Strait of Hormuz.

Over the weekend, the Brent Crude dropped to $71.99, the lowest since the Iran war started.

The earlier increase in crude prices saw local refiners and marketers raising pump prices quickly across the country, with petrol price climbing to between N1,350 to N1,500 and diesel selling N2,000 as hostilities intensified in the gulf between April and May.

Fuel is still being sold at an average of N1,200 while some local refiners fixed between N1,025 and N1,075 as their gantry prices despite the recent reduction of the prices by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery.

Marketers had earlier maintained that the ongoing drop in the crude oil prices will not translate to express reduction in local prices of the product on the ground that they needed to exhaust old supplies procured when prices were high.

They said it will take a minimum of six months before Nigerians could feel the impact of the reduced crude oil prices on local cost of the product.

Vote of confidence in FCCPC

Stakeholders who spoke with Daily Trust on the marketers’ alleged exploitative act deplored the development, saying it negates the spirit of transparency and fair pricing in the deregulated regime.

They said it’s wrong for the marketers to add salt to the injuries Nigerians bear on account of the huge cost of energy and biting inflation in the land.

They expressed support for the looming action of the FCCPC saying such action would curb the excesses of the fuel marketers in the country.

They urged other regulatory agencies in the sector to go hard on the marketers with a view to protecting the consumers of fuel against exploitation and sharp practices.

Mr. Rasheed Adeleke, an energy expert, told Daily Trust that fuel marketers’ narrative for keeping the cost of the product high in order to exhaust old stock was non genuine and inconsiderate.

According to him, such a narrative was a recurring decimal for most oil marketers because they find it difficult to lower prices in order to ameliorate the sufferings of consumers.

He added: “The threat by the Federal Competition and Consumer Protection Commission to wield the big sticks on the marketers exploring consumers was in order and timely.The agency’s intervention shows the regulator is up and doing to shield Nigerians against sharp practices by the marketers.

“I express my support for the agency as it plans to embark on cleansing the rot associated with over-pricing of fuel and exploitation of Nigerians. Nigerians don’t deserve to continue buying at exploitative prices in the face of the reduction in the prices of crude oil.”

He tasked other regulatory agencies to take a cue from FCCPC with a view to sanitising the downstream sector of the country’s petroleum industry.

…Marketers, outlet owners speak on way out

The National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, reiterated that market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for Nigerians.

He told Daily Trust that increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.

He maintained that competition remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers.

According to him, a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.

He advised the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, to facilitate talks with the two Chinese firms that have expressed interest in operating the Port Harcourt and Warri Refineries.

He added that the resumption of operations at the Port Harcourt and Warri Refineries under competent private management would enhance supply stability, promote healthy competition, and ultimately lead to more affordable petroleum products for Nigerians.

He advocated the need for a transparent, competitive, and consumer-friendly downstream petroleum sector that delivers fair pricing, energy security, and sustainable economic growth for all Nigerians.

The Eastern Zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that the entry of additional technically competent operators into Nigeria’s refining industry would discourage monopolistic tendencies, improve efficiency, guarantee a more stable supply of petroleum products, and ultimately reflect in lower pump prices for consumers across the country.

He implored the Nigerian National Petroleum Company Limited, NNPCL, to explain the prolonged delay in finalizing a Technical Equity Partnership with two Chinese firms for the completion of the Warri and Port Harcourt refineries.

Speaking in Abuja at the Good Governance Summit organised by the Working People United (WOPU), Comrade Inimgba Emmanuel Okubowei,  the current Zonal Secretary of IPMAN Eastern Zone (System 2E), expressed concern that the delay in concluding the agreement is taking far too long and is depriving Nigerians of the immense economic and social benefits expected from the investment.

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