The Federal Government announced that oil marketers have assured it of their commitment to addressing the high cost of Premium Motor Spirit (PMS), commonly known as petrol. This development follows growing concerns over current pump prices across the nation.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), disclosed this information to journalists after a meeting with various oil marketers regarding petroleum product pricing. He emphasized that current petrol prices do not align with prevailing international crude oil prices, despite a recent decline in the global oil market.
Minister Lokpobiri challenged marketers on the slow pace of petrol price reductions, noting the significant drop in crude oil prices internationally. He highlighted that while Brent crude prices rapidly increased when it was at $118 per barrel, the same rapid decline has not been observed domestically despite the fall in global prices.
Marketers acknowledged the government's concerns and pledged to consider measures to address the issue. Lokpobiri quoted a participant stating that the crude oil price for Iboe was still over $90 per barrel, but the government insisted on a more proportionate reflection of market changes.
The minister reiterated that despite the downstream sector being deregulated, the government remains committed to engaging industry players. This engagement aims to ensure that Nigerian consumers benefit from favourable market conditions.
The meeting, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, gathered key stakeholders from Nigeria’s downstream petroleum sector. Participants included Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), PETROAN, MEMAN, DAPPMAN, IPMAN, NARTO, TotalEnergies, Eterna, Matrix Energy, and DPRP.
Lokpobiri stressed that deregulation should not lead to profiteering. He insisted that declines in Brent crude prices should translate into lower prices for PMS and Automotive Gas Oil (AGO), given their broad impact on the wider economy.
NMDPRA Chief Executive Rabiu Abdullahi Umar stated that the meeting was convened to promote cost-reflective pricing. He urged stakeholders to collaborate on inventory management, market monitoring, and national fuel reserves to achieve this goal.
This engagement follows earlier concerns raised by the Federal Government that recent declines in international crude oil prices have not been adequately reflected in domestic petrol prices. Regulators have intensified scrutiny, arguing that consumers should benefit more quickly from favourable international oil market developments.
On June 28, 2026, the FCCPC had expressed concern over what it described as the slow reduction in petrol prices by refiners, depot owners, marketers, and retailers. The Commission's market surveillance indicated that recent reductions in gantry and retail prices were not commensurate with the significant fall in global crude oil prices.
The FCCPC noted that petroleum prices in Nigeria typically rise rapidly with global crude oil price increases, but consumers have not enjoyed similar benefits from recent international price declines. The Commission urged operators in the downstream petroleum sector to ensure domestic pricing accurately reflects prevailing market conditions.
This latest engagement between the Federal Government and industry stakeholders signifies renewed efforts to ensure that the benefits of lower global crude oil prices are passed on to Nigerian consumers through more affordable petrol prices.
