Lucky Obukohwo, Reporting
The Federal Government on Monday convened a high-level meeting with major stakeholders in the downstream petroleum sector to address concerns over the pricing of Premium Motor Spirit (PMS), stressing that the recent decline in global crude oil prices should translate into lower pump prices for consumers.
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 key players in the industry to deliberate on the issue.
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 mounting public expectations that domestic petrol prices should ease following the recent decline in global crude oil prices and the boost in local refining capacity.
Stakeholders are expected to continue consultations aimed at fostering fair competition, enhancing market efficiency, and strengthening the country’s energy security.
