The Federal Government has directed petroleum marketers to reduce the pump price of petrol in line with the sharp decline in global crude oil prices, insisting that consumers should benefit from lower international oil costs under Nigeria’s deregulated downstream market.
The directive was issued on Monday during a stakeholders’ meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. The meeting, chaired by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, brought together regulators, marketers, the Dangote Petroleum Refinery, and industry associations including IPMAN, PETROAN, MEMAN, DAPPMAN and NARTO.
Lokpobiri said it was unacceptable for marketers to continue selling petrol at high prices despite the recent drop in crude oil prices. He argued that operators should not rely on the cost of old inventories to justify current retail prices, stressing that fuel purchased at lower replacement costs should translate into immediate relief for consumers.
According to the minister, deregulation was introduced to promote competition and efficiency rather than create room for excessive pricing or profiteering. He warned that keeping petrol prices artificially high could undermine the government’s economic reforms by worsening inflation, given the central role of energy costs in transportation, manufacturing and food prices.
The Chief Executive of the NMDPRA, Rabiu Umar, acknowledged that although international crude prices have moderated after months of geopolitical tensions, domestic petrol prices have not adjusted accordingly. He said the regulator had begun engaging industry players to address the disconnect and would intensify market surveillance while improving transparency and inventory monitoring to ensure cost reductions are passed on to consumers.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said it had already started reducing pump prices in some parts of the country following its direct supply arrangement with the Dangote refinery. IPMAN President Abubakar Shettima said the deal would eliminate dependence on private depot owners and lower product acquisition costs, adding that petrol could sell for below ₦800 per litre if market conditions continue to improve.
While backing greater patronage of locally refined petroleum products, IPMAN also urged the government to grant independent marketers import licences alongside continued support for domestic refineries. The association argued that allowing marketers to source products competitively from both local refiners and imports would deepen competition and ultimately drive down prices for consumers.
