The federal government has scheduled a national stakeholder summit for July 23 and 24, 2025, to address growing concerns over petrol pricing and supply dynamics in the downstream sector, as independent marketers push for price control.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is planning a summit that will bring together industry operators, marketers, refiners, and government officials to discuss petroleum pricing standards, feedstock adequacy, and market stabilisation strategies.
Francis Ogaree, Executive Director of Hydrocarbon Processing Plants, Installation, and Transportation Infrastructure at the NMDPRA, confirmed the date and summit at the 24th Nigeria Oil and Gas Energy Week, which concluded in Abuja.
The director emphasised the importance of conversation in developing a sustainable pricing system in the post-subsidy period. Recall that petroleum merchants have raised irritation and concern about the Dangote refinery’s unexpected increases in the price of Premium Motor Spirit, better known as petrol, with no prior notice.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasises the importance of a stable market and energy security.
He advocates for mechanisms to analyse price fluctuations and prevent negative impacts on the industry.
Gillis-Harry also advocates for transparency in pricing, particularly regarding the impact of Dangote’s price reductions on retailers who may have purchased fuel at a higher cost.
Similarly, the Petroleum and Natural Gas Senior Staff Association of Nigeria questioned the petroleum pricing regime last month, claiming that petroleum marketers are exploiting Nigerians through inflated petrol prices and demanding that the current pump price of PMS be between N700 and N750 per litre.
In response to these concerns, Ogaree stated that the NMDPRA was aware of the operational risks that companies in the industry faced and had taken real steps to standardise prices while encouraging more investment in local refining.
Speaking during the panel session titled “Building a resilient and competitive refining sector”, he said, “We are engaging stakeholders at our forum, where we address the issues and proffer solutions. I would like to remind you that the NMDPRA has only been in existence for three and a half years. And in that period, we have achieved giant strides in the number of licences we have given and in addressing the issues.
“Even on the issue of petroleum pricing, which is another one that we are facing now and relates to standardisation. It is a work in progress, and that is why, at the latter part of this month, exactly on July 23 to 24, a two-day event, we will be talking about petrol pricing. Again, that is to allay some fears and put in some standards. The issue of pricing – everyone knows that it is a sensitive one and peculiar from one country to another, and the authority is working.”
In terms of refining capacity and supply security, Ogaree disclosed that Nigeria now has ten operational and near-operational refineries, including three NNPC refineries, the Dangote plant, which produces 650,000 bpd, and six modular refineries.
He also stated that some of the forthcoming refineries will require between 1,000 and 200,000 barrels per day and are slated to begin operations in 2026.
“We have about 10 refineries right now. The three Nigerian National Petroleum Company refineries. We have Dangote refinery and six modular refineries. When I look at the combined capacity for those refineries, we need about 1,124,000 barrels per day.”
He did, however, acknowledge that the performance of the downstream business was dependent on the supply of crude oil feedstock to satisfy the expanding number of licensed refiners.
“We know our current production capacity. These are just operating refineries. When I think about new refineries coming up very soon. Some of them need 200,000 barrels to 1,000 barrels, and I compute them together. Some of them would be on-stream by 2026.
“You know that this number of barrels has to grow, and there has to be more production if we are to meet up. The apparent fear, and I must be sincere, is on the feedstock. We have given out 47 licences, all of which are to do with establishments and construction, and they all go into operation. We must be able to meet their demands when they all go on stream.”
