NMDPRA, Marketers Hold Talks On Affordable Fuel Prices
FG Engages Oil Marketers on Fuel Price Reduction Amid Declining Global Crude Oil Prices
Government Convenes High-Level Industry Meeting
THE Federal Government has initiated fresh consultations with major oil marketers aimed at reducing the retail price of Premium Motor Spirit (PMS), following the sustained decline in international crude oil prices.
The strategic meeting, convened by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought together government officials and key stakeholders in the downstream petroleum industry to examine the factors preventing lower global crude prices from translating into reduced pump prices in Nigeria.
The engagement forms part of broader efforts to ensure that the benefits of changing market conditions are reflected in the domestic petroleum market while preserving investment confidence within the deregulated sector.
Minister Calls for Market-Driven Price Adjustment
Addressing participants before the commencement of the closed-door session, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government’s objective was to achieve lower fuel prices through dialogue rather than regulatory directives.
He stressed that declining international crude oil prices should ordinarily influence domestic fuel pricing, noting that the same market realities that justified higher pump prices when Brent crude exceeded 118 dollars per barrel should equally support reductions now that prices have fallen below 70 dollars.
According to the minister, deregulation should encourage efficiency and healthy competition without creating conditions that unfairly burden consumers.
Balancing Consumer Protection and Investor Confidence
Lokpobiri explained that while government remains committed to protecting investments in the downstream petroleum sector, it also has a responsibility to safeguard consumers from pricing practices that fail to reflect prevailing market conditions.
He noted that the Petroleum Industry Act (PIA) empowers regulators to promote fairness and transparency within the industry, adding that excessive profiteering is inconsistent with the objectives of the country’s deregulated petroleum market.
The minister said constructive engagement with marketers offers the best path toward achieving affordable fuel prices without undermining business sustainability or discouraging private sector participation.
NMDPRA Examines Obstacles to Price Reduction
Earlier, the Chief Executive Officer of the NMDPRA, Farouk Ahmed, represented by Executive Director Rabiu Umar, said the meeting was convened to address the apparent disconnect between falling international crude oil prices and the relatively stable retail price of petrol across Nigeria.
He noted that although geopolitical tensions have eased, contributing to lower global oil prices, several operational factors—including inventory management practices and broader market dynamics—may be delaying corresponding adjustments at filling stations.
The regulator said discussions would focus on identifying practical solutions capable of improving market responsiveness while maintaining stability within the supply chain.
Strategic Petroleum Reserve, LPG Success Highlighted
The NMDPRA also pointed to the recent decline in Liquefied Petroleum Gas (LPG) prices as evidence that sustained dialogue between regulators and industry operators can produce positive outcomes for consumers.
In addition, the authority disclosed ongoing work toward establishing a National Strategic Stock framework designed to strengthen Nigeria’s energy security, improve supply resilience, and cushion the country against future disruptions in petroleum product availability.
The agency urged marketers to actively support collaborative efforts aimed at balancing commercial sustainability with consumer welfare, expressing optimism that the consultations would lead to practical measures capable of improving fuel affordability nationwide.
