The Federal Government has called on petroleum marketers to reduce the pump prices of Premium Motor Spirit (PMS) and other petroleum products, saying the recent decline in global crude oil prices should be reflected in the domestic market.
The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum held in Abuja.
Lokpobiri said the easing of geopolitical tensions between the United States and Iran had contributed to softer international crude oil prices, creating room for downward adjustments in fuel prices. He expressed concern that many marketers had yet to pass the benefit of the decline on to consumers.
While acknowledging that Nigeria's deregulated petroleum market allows prices to respond to market forces, the minister warned that operators should not use the policy as an opportunity to make excessive profits at the expense of Nigerians.
He stressed that the NMDPRA has a legal obligation under the Petroleum Industry Act (PIA) 2021 to ensure deregulation does not encourage unfair pricing practices or undermine consumer protection.
Speaking on the broader regulatory environment, Lokpobiri said the country's petroleum sector must move beyond a narrow focus on compliance to building a regulatory framework that inspires long-term investor confidence.
"For too long, the dominant question in our regulatory conversations has been: are operators complying? That question matters. It will always matter. But it is no longer sufficient.
"The more consequential question today is this: are our regulatory authorities doing their job? Is it clear, consistent and predictable enough to give investors the confidence they need to commit capital, not just for one cycle, but for the long term?
"Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward," he said.
The minister urged marketers to adopt fair pricing practices that allow consumers to benefit whenever market conditions support lower fuel prices.
According to him, the deregulation of the downstream petroleum sector under President Bola Tinubu has transformed fuel supply across the country by encouraging private investment, including the emergence of the Dangote Refinery and other refining projects.
He said the policy has largely eliminated the recurring fuel shortages that previously affected the country, even during recent disruptions caused by the conflict involving the United States, Israel and Iran.
Lokpobiri also challenged regulators to strengthen consumer protection by ensuring that fuel buyers receive the correct quantity of products purchased.
"Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product?
"When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less," he said.
The minister noted that investors are increasingly attracted to markets where regulatory decisions are transparent, consistent and predictable, arguing that legal certainty has become just as important as regulatory compliance.
He described general counsel and legal advisers as strategic stakeholders whose responsibilities extend beyond legal interpretation to supporting investment decisions, improving regulatory policies and strengthening governance within the petroleum industry.
Lokpobiri encouraged legal advisers across the sector to provide constructive feedback whenever regulations or implementation guidelines create uncertainty capable of discouraging investment.
According to him, Nigeria's petroleum industry is entering a new phase marked by expanding domestic refining capacity, increasing private sector participation and growing opportunities across the midstream and downstream segments.
He maintained that sustaining the sector's momentum would require policy consistency, transparent regulation, efficient dispute resolution mechanisms and stronger collaboration among government institutions, regulators, operators and legal practitioners.
The minister expressed confidence that recommendations from the forum, themed "Beyond Compliance: Certainty and Investment Confidence in Nigeria's Petroleum Sector," would strengthen governance, improve regulatory certainty and enhance investment confidence across the industry.