The Federal Government has intensified efforts to ensure fair pricing of Premium Motor Spirit (PMS), commonly known as petrol, by convening a high-level meeting with Dangote Refinery, petroleum marketers, regulators, and key industry stakeholders in Abuja. The meeting, hosted at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), comes amid growing concerns that local fuel prices have not reflected the recent decline in global crude oil prices.
The development follows a directive from the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who recently urged marketers to immediately adjust pump prices downward in line with falling international oil prices. Speaking at the opening session, the minister emphasized that while the downstream sector has been deregulated, the policy should not be used as an avenue for excessive profiteering at the expense of Nigerians. He noted that fuel prices directly impact transportation, businesses, and household expenses across the country.
Representatives from major industry players, including Dangote Refinery, TotalEnergies, Eterna, Matrix Energy, MEMAN, DAPPMAN, IPMAN, PETROAN, and NARTO, attended the stakeholders’ engagement. Lokpobiri called on all participants to work together and find common ground that would allow consumers to benefit from lower fuel costs. He reiterated the government’s commitment to balancing the interests of businesses while protecting ordinary Nigerians from unfair pricing practices.
Also addressing the gathering, the Chief Executive of the NMDPRA, Rabiu Abdullahi Umar, explained that the meeting was convened to promote cost-reflective and transparent pricing in the petroleum sector. According to him, global crude oil markets have experienced reduced volatility in recent months, resulting in lower international oil prices. However, he expressed concern that these positive developments have not been adequately reflected in domestic fuel prices, creating pressure on consumers already facing economic challenges.
The closed-door meeting is expected to produce practical solutions that encourage fair competition and faster transmission of global price reductions to the local market. The development comes after the Federal Competition and Consumer Protection Commission (FCCPC) raised concerns over the slow pace of fuel price reductions by refiners, depot operators, marketers, and retailers. The commission warned that businesses engaging in unfair pricing practices could face regulatory action as authorities continue monitoring the downstream petroleum sector to ensure consumers receive the full benefits of lower crude oil prices.
source: nairametrics