FG Questions High Petrol Prices, Meets Dangote, Marketers Over Falling Crude Oil Costs

The Federal Government has begun fresh consultations with major players in Nigeria's downstream petroleum sector over the continued high price of Premium Motor Spirit (PMS), insisting that recent declines in global crude oil prices should be reflected in lower pump prices for consumers.

The high-level meeting, held on Monday 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 industry stakeholders.

Speaking at the meeting, the Chief Executive of the NMDPRA, Rabiu Umar, said the engagement was convened at the directive of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, to examine the factors behind current petrol pricing and ensure consumers benefit from changing market conditions.

Umar stressed that the meeting was not intended to impose price controls but to promote transparency, strengthen market efficiency and identify practical solutions to pricing concerns in the deregulated downstream sector.

"We want to engage in an open, transparent and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, examine inventory management and align on how we can collectively accelerate mechanisms such as the National Strategic Stock to protect Nigeria's energy security," he said.

He urged marketers, refiners and regulators to work together in balancing business sustainability with consumer protection.

"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.

The NMDPRA boss noted that international crude oil prices had experienced significant volatility over the past six months due to geopolitical tensions and global conflicts. However, with the easing of those tensions, crude oil prices have moderated, reducing the replacement cost of petroleum products.

Despite that development, he observed that retail petrol prices in Nigeria have remained largely unchanged.

"As a responsible regulatory authority, it is our duty to work alongside industry stakeholders to interrogate the market forces, understand operational bottlenecks and address the disconnect between falling replacement costs and sustained retail prices," Umar said.

He reaffirmed the Federal Government's commitment to a fully deregulated, competitive and investment-driven petroleum market, but warned that deregulation should not become an excuse for unfair pricing practices.

"President Bola Tinubu has laid a resilient foundation for a deregulated, competitive and investment-driven market. But 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 stated.

According to Umar, the government expects a pricing framework that allows businesses to remain profitable while ensuring the benefits of lower costs are passed on to Nigerians without unnecessary delays.

"We need to build a transparent ecosystem where the gains from market improvements are reflected in pump prices in a timely and fair manner," he said.

The meeting comes amid growing public expectations that petrol prices will fall following the recent decline in international crude oil prices and increased domestic refining capacity, particularly from the Dangote Refinery.

Industry stakeholders are expected to continue consultations with the government as efforts intensify to promote fair competition, improve market efficiency and strengthen Nigeria's energy security.