The Federal Government has warned petroleum marketers against keeping petrol prices high by relying on profits from previously purchased expensive fuel, insisting that Nigerians must benefit from lower replacement costs.
The warning was issued on Monday during a stakeholders’ meeting on petrol pricing held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. The meeting brought together key industry players, including representatives of Dangote Refinery, major marketers, and regulatory agencies.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said marketers must reflect falling global crude oil prices in pump prices as they restock at lower costs. He stressed that temporary gains from old inventory should not justify sustained high prices.
“Once replacement costs drop, the benefit should be passed on to consumers promptly,” Lokpobiri said, noting that pricing must align with a competitive and transparent deregulated market.
Although petrol prices have declined from about ₦1,596 per litre in May to around ₦1,296, the government said the reduction does not match the drop in global crude oil prices, which have fallen from over $118 per barrel in April to about $71.
The minister warned that maintaining artificially high fuel prices could worsen inflation, increase transportation and food costs, and slow economic recovery. Nigeria’s inflation rate, he noted, has eased to 15.9 percent from 34 percent in 2024 but remains vulnerable to rising energy costs.
Lokpobiri reaffirmed that deregulation was meant to promote efficiency and fair competition, not excessive pricing, and directed the NMDPRA to strengthen market monitoring and enforce pricing transparency.
He also called for the urgent rollout of the National Strategic Stock to stabilize supply and reduce price volatility.
Earlier, NMDPRA Chief Executive Rabiu Umar said the meeting was convened to address the gap between falling global prices and local pump rates. He noted that a similar engagement in the gas sector recently led to a noticeable drop in cooking gas prices.
Umar emphasized that deregulation should not lead to unfair pricing, adding that collaboration between regulators and operators is key to ensuring both business sustainability and consumer protection.
The meeting is ongoing, with stakeholders expected to reach resolutions aimed at ensuring fair pricing in the downstream petroleum sector.
