By Ighomuaye Lucky. O
The Federal Government on Monday summoned key players in the downstream petroleum sector for a high-level meeting to address concerns over the pricing of Premium Motor Spirit (PMS), insisting that the recent decline in global crude oil prices should be reflected in lower pump prices for Nigerian consumers.
The meeting, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought together representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other major industry stakeholders to examine factors influencing petrol pricing.
Addressing participants, the Chief Executive of the NMDPRA, Rabiu Umar, said the engagement was designed to strengthen collaboration among industry operators rather than impose price controls.
He stressed that the authority remains committed to promoting transparency, competition, and efficiency in the downstream petroleum market.
Umar disclosed that the meeting was convened on the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review issues surrounding cost-reflective and equitable petrol pricing.
He said the discussions were intended to ensure that market realities, including movements in global crude oil prices and domestic supply conditions, are fairly reflected in retail fuel prices while safeguarding consumer interests and maintaining market stability.
“We want to engage in an open, transparent, and solution-oriented dialogue.
“We want to hear your challenges, discuss market surveillance, look into inventory management, and align on how we can collectively accelerate key mechanisms like the National Strategic Stock (NSS) to protect our national energy security,” Umar said.
He appealed to participants to work together in finding practical solutions that would sustain businesses while protecting consumers from unfair pricing.
“I urge everyone present to engage constructively. Let us work together to find a balanced path forward that keeps your businesses viable while ensuring that the public is fairly protected,” he added.
Umar pointed that the international crude oil market had witnessed significant volatility over the past six months, driven largely by geopolitical tensions and global conflicts.
However, he said the easing of those tensions had recently led to a moderation in crude oil prices.
Despite the decline in international prices, he observed that domestic retail petrol prices had not adjusted accordingly.
“As a responsible Regulatory Authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices,” he said.
The NMDPRA boss reiterated the federal government’s commitment to a deregulated and competitive petroleum market, saying deregulation should not be exploited to the detriment of consumers.
“President Tinubu has laid a resilient foundation for a deregulated, competitive, and investment-driven market.
“But let me be clear: deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value, and protect the public interest,” he said.
He stressed that marketers’ profitability and consumer welfare should go hand in hand, calling for a transparent pricing framework that ensures market gains are passed on to Nigerians without unnecessary delays.
“We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” Umar said.
The meeting comes amid mounting public expectations that domestic petrol prices should ease following the recent decline in global crude oil prices and the boost in local refining capacity.
Stakeholders are expected to continue consultations aimed at fostering fair competition, enhancing market efficiency, and strengthening the country’s energy security.
Culled from Sun
