ABUJA — The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure petroleum marketers do not exploit Nigerians through excessive fuel pricing under the country’s deregulated downstream petroleum market.
The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the opening of the NMDPRA General Counsel and Legal Advisers Forum in Abuja.
The two-day forum, themed “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector,” focused on strengthening regulatory certainty and attracting investments into Nigeria’s oil and gas industry.
Lokpobiri stressed that although the downstream petroleum sector operates under a deregulated system, the regulator has a statutory responsibility to prevent marketers from taking unfair advantage of consumers.
He noted that following the easing of tensions in the Middle East and the decline in global crude oil prices, Nigerians expected a corresponding reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol. However, despite crude oil prices dropping from about $120 per barrel to nearly $72 per barrel, petrol prices have remained high across the country.
According to the minister, market forces should eventually bring prices down, but the regulator must ensure that deregulation does not become an avenue for profiteering.
He also questioned the effectiveness of regulatory oversight beyond price monitoring, emphasizing that consumers deserve accurate fuel measurements.
“When motorists pay for 10 litres of petrol, they should receive exactly 10 litres—not less,” he said.
Lokpobiri observed that despite recent geopolitical tensions involving the United States and Iran, Nigeria did not experience fuel shortages. He attributed the stability to the deregulation of the downstream sector and the growing contribution of domestic refineries to fuel supply.
He described the Petroleum Industry Act (PIA) as the legal framework for transforming the petroleum industry but stressed that investor confidence would depend on consistent implementation, transparency and regulatory predictability.
The minister urged legal advisers in the petroleum industry to support investment and economic growth by reducing unnecessary regulatory bottlenecks rather than creating obstacles for investors.
He said the success of the industry would ultimately be measured by the volume of investments attracted, businesses supported, jobs created and long-term economic value generated.
Earlier, the Chief Executive of NMDPRA, Mallam Rabiu Umar, said the petroleum sector had reached a stage where transparency, predictability and investor confidence were becoming more important than simple regulatory compliance.
He explained that the implementation of the Petroleum Industry Act has shifted attention from what the law provides to how effectively it is being implemented to deliver certainty for investors.
Also speaking, the Secretary and Legal Adviser of NMDPRA, Dr. Joseph Tolorunse, said regulatory certainty has helped maintain stable fiscal policies throughout project lifecycles while reducing policy reversals. According to him, the reforms introduced under the PIA have strengthened Nigeria’s competitiveness and improved its attractiveness to investors.
Meanwhile, Nigeria’s downstream petroleum market recorded slight changes in depot prices across Lagos, Port Harcourt, Calabar and Warri.
Market data showed that PMS prices at several depots declined marginally by between ₦1 and ₦6 per litre, while some facilities maintained previous prices.
In Lagos, African Terminal reduced its petrol price from ₦1,125 to ₦1,122 per litre, while AIPEC lowered its price to ₦1,124 per litre. Other depots, including AITEO, BONO, EMADEB and TECHNO OIL, also implemented small price reductions, with EMADEB recording the highest drop of ₦6 per litre.
Industry observers attributed the price moderation to increased domestic refining capacity and stronger competition among suppliers.
In Port Harcourt, diesel prices recorded mixed movements. African Terminal and Duport increased diesel prices from ₦1,435 to ₦1,503 per litre, while Matrix and Sigmund reduced their prices by ₦20 per litre.
Petrol prices in Port Harcourt remained relatively stable, trading between ₦1,120 and ₦1,126 per litre.
Calabar also recorded slight adjustments, with Fynfield reducing its PMS price from ₦1,145 to ₦1,140 per litre, while Soroman maintained its price at ₦1,140 per litre.
In Warri, Matrix, Nepal and Prudent made marginal reductions in PMS prices, lowering them by between ₦1 and ₦2 per litre.
Managing Director of 11 Plc, Osagie Ogedegbe, said Dangote Refinery currently plays a major role in determining petrol prices in Nigeria because most marketers source products from the refinery.
He expressed optimism that petrol prices would decline further if exchange rate stability continues and international crude oil prices remain low.
Energy expert and Lead Strategic Consultant at Acepontis Ltd, Atiemoria Ebhodaghe, explained that petrol prices often rise quickly when crude prices increase but decline slowly when crude prices fall because marketers usually sell off previously purchased expensive stock before adjusting prices downward.
He also noted that although Dangote Refinery buys local crude in naira, crude valuation remains tied to the international dollar market, making exchange rate fluctuations a major factor in determining production costs.
According to him, recent reductions in wholesale depot prices and retail price adjustments indicate that consumers may begin to experience gradual relief if market conditions remain favourable.
A senior official of the Major Energies Marketers Association of Nigeria (MEMAN), who requested anonymity, said marketers were still recovering losses accumulated over the past 18 months, explaining that this was one reason pump prices were reducing gradually rather than immediately.
The Managing Director of Petroleumprice.ng, Mr. Olitide Jeremiah, also observed that despite lower crude oil prices and declining depot prices, motorists are yet to enjoy corresponding reductions at filling stations.
He said industry operators are expected to respond to the changing market conditions by adjusting retail prices accordingly.
The National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, attributed the slow reduction in pump prices to the absence of a fully competitive downstream petroleum market.
According to him, fuel prices in Nigeria typically rise quickly whenever costs increase but respond slowly when market conditions improve.
Meanwhile, the Nigeria Labour Congress (NLC) has blamed the Federal Government for the continued high cost of petrol, accusing it of allowing excessive market dominance within the downstream petroleum sector.
Speaking through an official who requested anonymity, the labour union said it had repeatedly warned against policies capable of creating monopoly in the petroleum industry.
The Congress argued that true deregulation can only succeed where there is healthy competition, transparency and effective regulation, insisting that the current market structure allows a few dominant operators to dictate prices at the expense of consumers.
The NLC maintained that with falling global crude oil prices and improving market indicators, Nigerians should already be benefiting from lower fuel prices.
It called on the Federal Government to dismantle monopolistic practices, promote genuine competition and strengthen regulatory oversight to ensure that consumers enjoy the benefits of favourable developments in the international oil market.
FG Orders NMDPRA to Check Fuel Price Exploitation as Marketers Delay Pump Price Cuts
