FG Orders Fuel Marketers to Cut Petrol Prices as Crude Oil Costs Fall

The Federal Government has directed petroleum marketers to reduce the pump price of petrol in line with the recent decline in global crude oil prices, signaling a stronger commitment to protecting consumers under Nigeria’s deregulated petroleum market. The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged regulators to prevent excessive pricing that places an unnecessary burden on Nigerians.

Speaking at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja, Lokpobiri emphasized that deregulation should encourage market efficiency and investment, not create opportunities for profiteering. The two-day forum, themed “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector,” brought together key stakeholders to discuss the future of the industry.

The minister noted that global crude oil prices have fallen sharply in recent weeks following the easing of tensions in the Middle East, particularly between Iran and the United States. Crude prices, which previously climbed to around $120 per barrel during periods of uncertainty, dropped to about $72 per barrel last week. According to him, Nigerians reasonably expect petrol prices to reflect this downward trend.

Despite the significant reduction in crude oil prices, many refiners and petroleum marketers have continued to sell Premium Motor Spirit (PMS), commonly known as petrol, at relatively high prices. This has sparked growing concerns among consumers, labour groups, and economic analysts who argue that the benefits of lower international oil prices are yet to reach ordinary Nigerians struggling with rising living costs.

Lokpobiri therefore tasked the NMDPRA with ensuring transparency and fairness in the downstream sector, stressing that market deregulation must balance business interests with consumer protection. His remarks come amid increasing public pressure for lower fuel prices, as Nigerians look to the government and industry operators for relief from the economic challenges facing households and businesses across the country.

source: vanguard