FG Presses Dangote, Oil Marketers on Petrol Price Reduction

The Federal Government on Monday began talks with the Dangote Refinery, petroleum marketers and other stakeholders as part of efforts to secure a further reduction in the pump price of Premium Motor Spirit (PMS), popularly known as petrol.

The meeting, held behind closed doors at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, also had representatives of the Federal Competition and Consumer Protection Commission (FCCPC) and key operators in the downstream oil sector in attendance.

Among those present were officials of TotalEnergies, Eterna, Matrix Energy, the Depot and Petroleum Products Retailers Association of Nigeria (DPRP), Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Nigerian Association of Road Transport Owners (NARTO) and the NMDPRA.

The meeting came days after the FCCPC expressed concern over what it described as the slow pace of reductions in petrol prices despite the sustained drop in global crude oil prices.

The commission had warned that refiners, depot owners, marketers and retailers engaging in unfair pricing practices at the expense of consumers could face regulatory sanctions.

Opening the meeting, the Chief Executive of the NMDPRA, Rabiu Umar, said the engagement was convened on the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.

According to him, the international crude oil market has experienced significant volatility in recent months but has recently shown signs of stability, resulting in lower global crude prices.

He, however, noted that the domestic retail market had yet to fully reflect the downward trend.

“We have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude oil prices,” Umar said.

He explained that the government’s objective was not to impose prices on operators but to work with stakeholders to find practical solutions that would benefit both the industry and consumers.

“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,” he added.

Addressing participants, Lokpobiri said the engagement was designed to build consensus on the challenges confronting the downstream petroleum sector and identify ways of ensuring that falling international crude oil prices translate into lower domestic fuel prices.

The minister stressed that the cost of petrol and Automotive Gas Oil (diesel) has a direct impact on virtually every sector of the Nigerian economy, making it imperative for stakeholders to reach a common understanding.

He maintained that while the sector had been deregulated, the policy should not be interpreted as an opportunity for excessive profiteering.

According to him, the continued decline in Brent crude prices provides sufficient justification for a corresponding reduction in the retail price of PMS.

Lokpobiri assured industry operators that the Federal Government remains committed to protecting consumers while also ensuring a stable and competitive downstream petroleum market.

The latest meeting follows recent reductions in petrol prices by the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), moves that have intensified expectations of further cuts across filling stations nationwide.