FG Directs Fuel Marketers to Cut Pump Prices as Global Oil Prices Fall

The Federal Government has directed petroleum marketers to immediately reflect the recent decline in global crude oil prices by reducing the pump prices of Premium Motor Spirit (PMS), commonly known as petrol and other petroleum products.

Minister of State for Petroleum Resources, Heineken Lokpobiri, gave the directive on Monday at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja.

Lokpobiri said the easing of geopolitical tensions involving Iran and the United States had contributed to a decline in global oil prices, making it necessary for marketers to adjust retail fuel prices accordingly.

He expressed concern that the reduction in international oil prices had yet to be reflected at filling stations across the country.

According to the minister, although fuel prices are now determined by market forces under Nigeria's deregulated petroleum sector, marketers should not exploit prevailing market conditions to make excessive profits at the expense of consumers.

"We expect that with the decline in global oil prices, the prices of PMS and other petroleum products should also adjust downward," he said.

Lokpobiri stressed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority has a statutory responsibility under the Petroleum Industry Act (PIA) 2021 to ensure that deregulation does not become a platform for unfair pricing or profiteering.

He said regulatory agencies must move beyond simply enforcing compliance and focus on creating a transparent, predictable and investor-friendly business environment capable of attracting long-term investments into the petroleum industry.

"For too long, the dominant question has been whether operators are complying with regulations. That remains important, but we must also ask whether our regulators are providing the certainty investors need to commit long-term capital," he said.

The minister credited President Bola Tinubu's removal of fuel subsidy and the deregulation of the downstream petroleum sector with improving product availability across Nigeria.

According to him, the reforms have encouraged private investment, including the operationalisation of the Dangote Refinery and other refining projects, while significantly reducing the recurring fuel shortages that previously plagued the country.

He noted that despite recent disruptions arising from tensions in the Middle East, petroleum products have remained available nationwide.

Beyond pricing, Lokpobiri urged regulators to ensure that consumers receive the correct quantity of fuel for every purchase.

"When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less," he said.

He added that legal advisers and regulators have a broader responsibility to strengthen governance, improve policy consistency and eliminate regulatory uncertainties that could discourage investment.

According to the minister, Nigeria's petroleum industry is entering a new phase driven by expanding domestic refining capacity, increased private-sector participation and growing opportunities across the midstream and downstream sectors.

He expressed confidence that recommendations from the forum would further strengthen governance, improve regulatory certainty and boost investor confidence in the country's petroleum industry.