The Federal Government has commenced a high-level engagement with Dangote Refinery, petroleum marketers and industry regulators in a renewed push to accelerate reductions in the pump price of Premium Motor Spirit (PMS), following the recent decline in global crude oil prices.
The closed-door meeting, held on Sunday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, was convened at the directive of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri. It brings together representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), PETROAN, MEMAN, DAPPMAN, IPMAN, NARTO, major depot operators and petroleum marketers.
The meeting follows growing pressure from the Federal Government and regulators on refiners and marketers to ensure domestic fuel prices reflect the sustained decline in international crude oil prices. Brent crude has fallen back to the low $70 per barrel range after easing geopolitical tensions in the Middle East and improved oil exports through the Strait of Hormuz.
Addressing stakeholders, NMDPRA Authority Chief Executive Rabiu Abdullahi Umar said Nigeria had witnessed significant volatility in global crude prices over the past six months but noted that recent moderation in the international market had yet to be fully reflected in domestic retail fuel prices.
He explained that the objective of the meeting was not to impose prices but to work collaboratively with operators to address issues affecting price adjustments. According to him, discussions would cover market surveillance, inventory management and strategies for strengthening the National Strategic Stock to enhance Nigeria's energy security.
Lokpobiri, who directed the engagement, reiterated that while the downstream petroleum sector remains deregulated, deregulation should not be interpreted as an opportunity for excessive profiteering. He stressed that since crude oil prices have declined, marketers should work towards ensuring that petrol and diesel prices become more affordable for Nigerians.
The meeting also comes days after the FCCPC warned refiners, depot operators, marketers and retailers against delaying price reductions despite falling crude oil prices. The Commission said its market monitoring showed that reductions in gantry and retail prices had not kept pace with the decline in global oil prices, warning that operators found engaging in unfair pricing practices could face regulatory sanctions.
The outcome of the meeting is expected to shape the next phase of pricing in Nigeria's downstream petroleum sector, with industry stakeholders anticipating further reductions in depot and pump prices as competition intensifies following recent price cuts by Dangote Refinery and improving product availability across the country.