The Minister of State for Petroleum (Oil), Sen. Heineken Lokpobiri, has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to engage in market surveillance and enforce pricing transparency across the supply chain to ensure that reductions in underlying costs are reflected promptly in ex-depot and retail prices.
Daily Trust reports that despite the drop in price of crude oil which came down to the pre Iran-US war in late February, the price of Premium Motor Spirit (PMS) otherwise known as petroleum, is yet to drop to the pre-war price.
As of yesterday, Brent crude is priced at $71.98 per barrel but a litre of fuel is still sold at over N1,100 in Lagos and environs and N1,300 in the Northern part of the country.
It would be recalled that a litre of PMS was sold at N700 and N800 before the Middle East hostilities started which resulted in the closure of the Strait of Hormuz.
Amidst the failure of marketers to crash down the price, the Federal Government yesterday met with Dangote Petroleum Refinery officials and marketers on the need to reduce the ex-gantry price.
Daily Trust reports that the meeting brought together representatives of the Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other key players in the downstream petroleum sector.
Also in attendance were the chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, the Depot and Petroleum Products Retailers Association of Nigeria, the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Nigerian Association of Road Transport Owners (NARTO), as well as officials of the NMDPRA.
Speaking during the stakeholders’ meeting on cost reflective pricing of PMS, Lokpobiri said NMDPRA has a pivotal role to play in strengthening consumer’s confidence that prices are determined fairly and not by information asymmetry or anti-competitive practices.
He stated that while PMS pricing is influenced by several factors beyond crude oil prices, it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management.
“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he said.
He assured that the federal government remained unwavering in its commitment to protect public interest post deregulation, which was never intended to create opportunities for excessive pricing or market distortions but rather promote efficiency, deepen competition and ultimately deliver value to Nigerians.
On his part, the Authority Chief Executive of NMDPRA, Rabiu Umar said the meeting was organised to look into what is delaying the reduction in fuel price.
He noted that as a responsible Regulatory Authority, it is its duty to step in alongside partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices.
“President Bola Ahmed Tinubu, GCFR, has laid a resilient foundation for a deregulated, competitive, and investment-driven market. But let me be clear: deregulation is not a license for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximize value, and protect the public interest.”
He said sustainable profitability for marketers and consumer welfare are not mutually exclusive and there is a 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.
Daily Trust
