The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says the current pump price of petrol is unjustified, arguing that Nigerians should be paying between N700 and N750 per litre not the current N875 to N905 range.
The union’s president, Festus Osifo, stated this during a world press conference in Abuja, stressing that fuel marketers are exploiting Nigerians despite the fall in global crude oil prices.
“When crude oil sold for around $80 per barrel, petrol was selling for about N900 per litre. Now that crude has dropped to about $62, the price should have come down. But that has not happened,” Osifo said.
Refineries Shut for Politics, Not Maintenance
Osifo also raised concerns over Nigeria’s non-functional refineries, blaming political interference not technical issues for repeated shutdowns.
He specifically referenced the recent 30-day shutdown of the Port Harcourt Refinery, which is scheduled to resume operations next Tuesday.
“The refineries are not working, not because they can’t, but because politics keeps getting in the way. Despite spending $2.5 billion on repairs, we still don’t see results,” he said.
PENGASSAN has, for over 15 years, called on the government to adopt the NLNG model where private investors manage operations while the government holds only a minority stake.
Marketers Exploiting Deregulation
PENGASSAN also accused fuel marketers of taking advantage of the deregulated market to inflate prices.
Osifo explained that crude oil prices and the exchange rate account for nearly 80% of petrol’s retail price. Based on current global benchmarks, he said the realistic price should be closer to N700–N750 per litre.
He criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to publish transparent pricing templates, allowing room for arbitrary pricing.
“If NMDPRA monitored the market properly, Nigerians would not be paying this much. Deregulation shouldn’t mean marketers can charge whatever they like,” he warned.
Insecurity Driving Investors Away
On a broader note, the union also warned that worsening insecurity in the Niger Delta is chasing international oil companies away from Nigeria, despite the government’s new incentives to cut operational costs.
Osifo appreciated President Tinubu’s Upstream Petroleum Operations Cost Efficiency Incentives Order signed in May 2025, which grants up to 20% tax credits for oil firms that reduce costs. However, he insisted that the main problem insecurity remains unresolved.
“Security is the real issue. Oil firms are leaving not just because of cost but because of the danger involved in operating here. Until that is tackled, incentives won’t matter much,” he added.
What PENGASSAN Wants
- Refineries should be managed like NLNG with investors taking the lead.
- Petrol should sell between N700–N750 per litre, based on global prices.
- NMDPRA must regulate and publish transparent pricing templates.
- Government must provide adequate security in oil-producing regions.
PENGASSAN’s position is a direct challenge to both government and private players in the downstream sector. With Nigerians struggling under the weight of high fuel prices, the union’s call for transparency, reform, and better management of national assets has struck a timely chord.