The Federal Government has stepped up efforts to bring down the pump price of Premium Motor Spirit (PMS), otherwise known as petrol or fuel, as it declared there was no justification for the current pump price of petrol in the country.
The Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, who warned petroleum marketers against profiteering, insisted that Nigerians must begin to benefit from the sharp decline in global crude oil prices.
Lokpobiri gave the warning at a stakeholders’ meeting on cost-reflective pricing of petroleum products organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja on Monday in Abuja.
The minister said there was no justification for maintaining current fuel prices when Brent crude, the international benchmark, had dropped from over 118 dollars per barrel to below 70 dollars.
According to Lokpobiri, marketers were quick to increase pump prices when crude oil prices rose and should be equally willing to reduce prices now that market conditions have changed.
He said: “All of you know that Brent crude went as far as 118 dollars a barrel. But it is now down to below 70 dollars per barrel. So there is no justification why the price will not reflect that in the market.’
Lokpobiri explained that the meeting was convened to build consensus among industry operators on a pricing framework that reflects current economic realities while safeguarding investments and delivering relief to consumers.
“We invite all of you to discuss how we can build consensus on bringing prices that will reflect the economic realities.”
In a move aimed at ensuring compliance, Lokpobiri directed the NMDPRA to strengthen market surveillance and enforce pricing transparency across the petroleum supply chain so that reductions in international crude oil prices are reflected in ex-depot and retail prices.
He also tasked the regulator with fast-tracking the operationalisation of the National Strategic Stock, saying the initiative would enhance energy security, minimise supply disruptions and help moderate price volatility.
The minister stressed that although the Federal Government remained committed to deregulation of the downstream petroleum sector, the policy should not be exploited for excessive profiteering at the expense of Nigerians.
He noted that the prices of petrol, diesel and other petroleum products directly influence transportation costs, manufacturing activities and the overall cost of living, making it imperative for operators to reflect market realities in their pricing.
“The meeting is aimed at developing a mutually acceptable framework for cost-reflective pricing that will benefit investors and consumers alike.”
Lokpobiri said the government preferred engagement with stakeholders instead of imposing directives that could prove difficult to enforce, expressing confidence that the dialogue would produce practical measures capable of balancing investor confidence with consumer welfare.
He further urged industry players to support the regulatory framework in building a transparent, competitive and stable downstream petroleum market where the gains of falling crude oil prices are transmitted to ordinary Nigerians.
The meeting later proceeded into a closed-door session attended by representatives of the Federal Competition and Consumer Protection Commission (FCCPC), Independent Petroleum Marketers Association of Nigeria (IPMAN), and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Also at the meeting were: Major Energies Marketers Association of Nigeria (MEMAN), Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Nigerian Association of Road Transport Owners (NARTO) and other key stakeholders.
