Nigeria’s downstream petroleum regulator said on Monday it would work with industry operators to ensure petrol prices reflect the recent decline in global crude oil prices, acknowledging that retail pump prices have yet to adjust to lower international market costs.
Speaking at a stakeholders’ meeting on cost-reflective pricing of Premium Motor Spirit (PMS) in Abuja, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, said the meeting was convened to address the gap between falling global crude prices and domestic petrol prices.
“Over the past six months, we have navigated considerable volatility in the international crude oil market. We watched prices surge due to heightened geopolitical tensions and global conflicts,” Umar said.
“Recently, we have witnessed a welcome easing of those tensions, which has driven a moderation in global crude oil prices. However, our domestic retail market has not yet adjusted to reflect these downward shifts.”
He said it was the regulator’s responsibility to examine market dynamics, identify operational bottlenecks and address the disconnect between declining replacement costs and sustained retail fuel prices.
Umar said President Bola Tinubu’s reforms had laid the foundation for a deregulated, competitive and investment-driven downstream petroleum market.
“But let me be clear: deregulation is not a licence for market distortion or unfair consumer pricing,” he said.
“It is intended to drive efficiency, maximise value and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive.”
Umar said a similar engagement with stakeholders in the domestic gas sector two weeks earlier had resulted in a significant reduction in liquefied petroleum gas (LPG) prices, demonstrating the value of dialogue between regulators and industry operators.
He said the authority was committed to ensuring that the benefits of improved market conditions are passed on to consumers in a timely and fair manner.
The regulator is also focusing on strengthening market surveillance, improving inventory management and accelerating the operationalisation of the National Strategic Stock to enhance Nigeria’s energy security, Umar said.
He called on industry stakeholders to develop practical solutions that would sustain business viability while protecting consumers.
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