Independent petroleum marketers on Monday pushed for the restoration of their importation rights and projected that the pump price of Premium Motor Spirit could fall below N800 per litre as the Federal Government intensified efforts to force down fuel costs. This development emerged during a crucial stakeholders' meeting on the cost-reflective pricing of petrol, convened at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja. The session brought together the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major operators in the sector. Top executives and representatives from TotalEnergies, Eterna Plc, and Matrix Energy Group were also in attendance alongside NMDPRA officials and delegates from the Dangote Petroleum Refinery to address the widening disconnect between falling global crude oil prices and high domestic pump prices. Petrol prices have remained a significant source of hardship for Nigerian households and businesses after surging due to Middle East tensions between Iran and the United States, which have since moderated without a corresponding domestic price drop.
The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to permit independent marketers to import petroleum products directly, arguing that greater market competition would ultimately reduce retail prices. While stressing the importance of supporting local refining capacity and helping the Dangote Petroleum Refinery function properly, Maigandi emphasized that marketers should be allowed to import products whenever necessary. Maigandi said, “Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,”. He assured the public that independent marketers are prepared to slash pump prices significantly under the right market conditions, noting that a price reduction of N125 per litre has already been recorded gradually across the country.
Maigandi further explained the progressive adjustment of fuel prices based on market forces and direct access to production facilities. He stated, “The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,”. The IPMAN leader expressed optimism about hitting the target under N800 if procurement terms from private depots and the local refinery continue to improve. He added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery. I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”.
Speaking to journalists after a closed-door session with the stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, expressed the government's concern that current retail pricing does not reflect international crude benchmarks. Lokpobiri said, “The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS. My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high. In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry.”. He explained that the government has directed operators to formulate concrete and practical steps to lower the financial burden on consumers, though he declined to give a definitive deadline for the price drop as discussions are still ongoing. He stated, “We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market. We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,”.
Prior to the main session, Lokpobiri issued a stern warning to petroleum marketers against using profits from previously acquired expensive fuel inventories to maintain high retail prices, insisting that the benefits of lower replacement costs must be passed on to consumers in a timely and transparent manner. The minister stated, “I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management. Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,”. He highlighted the sharp fluctuations in global crude oil prices over the past months, noting that international crude traded between $61 and $65 per barrel in January before surging above $118 per barrel in April, and subsequently declining to around $71 per barrel after the easing of geopolitical tensions.
Detailing the exact price movements and the peak retail costs, the minister pointed out that international movements should naturally reflect in the pricing of refined products, warning that high energy costs could worsen inflationary pressures and undermine recent economic stabilization gains. Lokpobiri noted, “Ordinarily, such movements in crude oil prices should be reflected in the pricing of refined petroleum products. While the initial increase in crude prices understandably exerted upward pressure on PMS prices, the subsequent moderation in crude oil prices has not translated into a commensurate reduction in pump prices across the domestic market. This disconnect has understandably raised concerns. PMS peaked at about N1,596 per litre in May and currently sells at around N1,296 per litre. While there has been some reduction, the adjustment has not been commensurate with the decline in underlying market conditions,”. He also called for the swift operationalisation of the country's backup supply system to shield the market from future volatility, stating, “The National Strategic Stock will strengthen national energy security, reduce exposure to supply disruptions, and moderate price volatility. There is urgency in ensuring that this mechanism becomes fully operational,”.
In his opening remarks, the Authority Chief Executive of the NMDPRA, Rabiu Umar, noted that the meeting was aimed at protecting the public interest and driving efficiency following the deregulation of the petrol market. Highlighting a successful template used in the domestic gas sector that brought down prices, Umar said, “Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit. Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks. It is exactly this kind of tangible success that inspired today’s gathering. When regulators and industry operators sit at the same table, we do not just debate challenges; we engineer solutions,”. He closed by cautioning operators against anti-competitive distortions, maintaining that commercial profitability and consumer welfare must coexist transparently. Umar said, “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. 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. Sustainable profitability for marketers and consumer welfare are not mutually exclusive. 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,”.
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