Nigerians may soon see significant relief at the fuel pumps as independent petroleum marketers project that the price of Premium Motor Spirit (PMS), popularly known as petrol, could fall below N800 per litre. The projection emerged during a high-level stakeholders’ meeting in Abuja, where the Federal Government and major players in the downstream petroleum sector discussed ways to ensure that declining global crude oil prices are reflected in domestic petrol prices. The meeting comes amid growing public frustration over the high cost of fuel despite recent improvements in international oil markets.
Leading the call for change, the Independent Petroleum Marketers Association of Nigeria (IPMAN) urged the Federal Government to restore direct importation rights to independent marketers. According to IPMAN President Abubakar Maigandi, increased competition in the petroleum market would drive down prices and create more options for consumers. While advocating for import licences, he also emphasized the importance of supporting local refining, particularly through the Dangote Petroleum Refinery, which has recently opened direct product access to independent marketers.
Maigandi revealed that marketers have already reduced petrol prices by as much as N125 per litre across various parts of the country and expressed confidence that further reductions are possible. He noted that the eventual price consumers pay will depend largely on purchase costs from refineries and depot owners. According to him, if market conditions remain favorable and supply channels become more competitive, petrol could sell for less than N800 per litre, bringing much-needed relief to households and businesses struggling with rising living costs.
The Federal Government echoed concerns over the current pricing structure, arguing that domestic petrol prices have not fallen in line with the sharp decline in global crude oil prices. Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, questioned why petrol prices rose rapidly when crude oil surged above $118 per barrel but have not reduced proportionately now that crude trades closer to $71 per barrel. He warned marketers against using profits from previously purchased expensive inventories as justification for maintaining high pump prices and insisted that lower replacement costs should be passed on to consumers.
As discussions continue, both regulators and industry operators appear committed to finding a solution that balances profitability with consumer welfare. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stressed that deregulation should encourage competition, efficiency, and fair pricing rather than market distortions. With improved domestic refining capacity, easing global oil prices, and increased pressure from consumers, the outcome of these negotiations could determine whether Nigerians finally experience the substantial fuel price reductions many have been anticipating.
source: punch