NMDPRA convenes Dangote Refinery, FCCPC and marketers as government pushes for lower PMS prices to reflect easing global crude oil costs

The Federal Government has urged stakeholders in Nigeria’s downstream petroleum sector to ensure that recent declines in global crude oil prices are reflected in the retail price of Premium Motor Spirit (PMS), saying consumers should benefit from improving market conditions.

Also read: PETROAN urges fuel price cuts as crude oil falls

The position was made known on Monday during a high-level stakeholders’ meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) at its headquarters in Abuja.

The meeting 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 key operators in the downstream oil and gas industry.

Speaking at the meeting, the Chief Executive of the NMDPRA, Rabiu Umar, said the engagement was designed to encourage collaboration rather than impose price controls, stressing that the regulator remained committed to promoting a transparent, competitive and efficient downstream petroleum market.

According to Umar, the meeting was convened on the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to examine issues surrounding cost-reflective and fair pricing of petrol nationwide.

“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 to protect our national energy security,” Umar said.

He urged industry players to work together to develop practical solutions that would sustain business operations while safeguarding consumers from unfair pricing practices.

“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 noted that the global crude oil market had experienced significant volatility over the past six months, largely because of geopolitical tensions and international conflicts.

However, he said easing global tensions had recently moderated crude oil prices, creating room for lower fuel costs.

Despite the decline in international crude prices, the NMDPRA chief observed that domestic pump prices for petrol had remained largely unchanged, creating what he described as a disconnect between falling replacement costs and retail pricing.

“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,” Umar said.

He reiterated that the Federal Government remained committed to a deregulated petroleum market but cautioned that deregulation should not be used to undermine consumer welfare.

“President Bola 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.

Umar emphasised that marketers’ profitability and consumer protection should complement each other, calling for a transparent pricing framework that enables Nigerians to enjoy the benefits of favourable market developments 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,” he said.

The FG Fairer Petrol Prices initiative comes as Nigerians increasingly expect a reduction in pump prices following the moderation in global crude oil prices and the expansion of domestic refining capacity, particularly with increased output from local refineries.

Since the full deregulation of the downstream petroleum sector in 2023 following the removal of fuel subsidy, petrol prices have been determined largely by market forces, including international crude prices, exchange rates, logistics costs and local refining capacity.

Recent increases in domestic refining have raised expectations that greater competition could lead to more stable and competitive fuel prices.

Also read: Oil slumps to lowest since US-Iran conflict

Monday’s meeting marks the latest effort by regulators to ensure that market efficiency translates into tangible benefits for consumers while preserving investor confidence and strengthening Nigeria’s long-term energy security.