The federal government has convened key players in Nigeria’s oil and gas sector to discuss fair petrol pricing amid concerns that retail fuel prices have not reflected the recent decline in global crude oil prices.
The meeting, held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought together representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Welcoming participants, Rabiu Umar, Chief Executive Officer of the NMDPRA, said the engagement was aimed at finding practical solutions rather than imposing directives.
He said the regulator wanted an open and transparent discussion on challenges affecting the downstream sector, including market surveillance, inventory management and strengthening the National Strategic Stock (NSS) to safeguard Nigeria’s energy security.
Umar urged stakeholders to work together to develop a balanced approach that keeps businesses profitable while ensuring consumers receive fair value.
He explained that the meeting was convened on the directive of Heineken Lokpobiri to promote cost-reflective and fair pricing of Premium Motor Spirit (PMS).
According to Umar, international crude oil prices have fallen in recent weeks following an easing of geopolitical tensions, but domestic pump prices have not adjusted at the same pace.
He said the regulator considers it its responsibility to work with industry stakeholders to identify the factors behind the disconnect between lower replacement costs and continued high retail prices.
Umar also said President Bola Tinubu had laid the foundation for a deregulated, competitive and investment-driven petroleum market, stressing that deregulation should not be used to justify market distortions or unfair pricing.
He added that sustainable profitability for fuel marketers and consumer protection can coexist, calling for a transparent market where the benefits of lower costs are passed on to Nigerians promptly.
