The Federal Government has warned petroleum marketers against keeping petrol prices high despite falling global crude oil prices, saying consumers should benefit from lower fuel replacement costs.
The warning was issued on Monday during a stakeholders’ meeting on cost-reflective pricing of Premium Motor Spirit (PMS), organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said marketers should not rely on profits from fuel bought at higher prices to justify maintaining elevated pump prices after replacement costs have fallen.
He explained that although petrol prices are influenced by factors such as exchange rates, logistics and distribution costs, reductions in procurement costs should be reflected in ex-depot and retail prices as new fuel stocks are purchased.
Lokpobiri noted that global crude oil prices have eased after rising earlier this year due to tensions in the Middle East. However, he said the decline has not been matched by a corresponding drop in petrol prices across the country.
According to him, the pump price of petrol has fallen from about N1,596 per litre in May to around N1,296 per litre, but the reduction does not fully reflect current market conditions.
The minister warned that keeping fuel prices unnecessarily high could increase transportation and production costs, drive inflation and weaken the country’s economic recovery.
He reaffirmed the government’s commitment to protecting consumers under the deregulated downstream petroleum sector, stressing that deregulation was introduced to promote competition, efficiency and fair pricing—not excessive profits.
Lokpobiri directed the NMDPRA to strengthen market surveillance and enforce pricing transparency to ensure that lower supply costs are passed on to consumers without delay.
He also called for the speedy implementation of the National Strategic Stock to improve energy security, reduce supply disruptions and help cushion future price shocks.
Earlier, NMDPRA Chief Executive Rabiu Umar said the meeting was convened to examine why falling global crude oil prices have not translated into lower petrol prices. He said the regulator would continue working with industry stakeholders to ensure a transparent market that balances business sustainability with consumer welfare.
The meeting later moved into a closed-door session, with stakeholders expected to issue resolutions after their deliberations.
