The Federal Government has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to stop petroleum marketers from overcharging Nigerians in the deregulated downstream sector.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, issued the directive on Monday in Abuja during the NMDPRA General Counsel and Legal Advisers Forum, themed “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”
Lokpobiri said that although the downstream sector has been fully deregulated, the regulator must ensure deregulation does not become a cover for exploiting consumers. He noted that with tensions easing in the Middle East and global crude prices sliding from $120 to about $72 per barrel last week, Nigerians expected pump prices to fall — but refiners and marketers have yet to adjust accordingly.
“While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering,” he said, adding that this must align with the Petroleum Industry Act.
He also directed NMDPRA to step up monitoring of filling stations to guarantee that consumers get exactly what they pay for. “When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” he said.
Despite recent global tensions involving the U.S. and Iran, Lokpobiri said Nigeria avoided fuel shortages thanks to deregulation and the rise of local refining capacity. He described the PIA as the foundation of the sector’s transformation but said building investor confidence now depends on consistent, predictable regulation — and called on legal advisers in the industry to act as partners in attracting investment rather than regulatory roadblocks.
NMDPRA’s Chief Executive, Farouk Ahmed, said the industry has reached a point where certainty, transparency and investor confidence matter more than mere compliance, while the agency’s Secretary and Legal Adviser, Dr Joseph Tolorunse, said regulatory stability has shielded projects from policy reversals and made Nigeria’s oil sector more attractive to investors.
Depot prices show mixed movement
Meanwhile, petrol depot prices across Lagos, Port Harcourt, Calabar and Warri showed only marginal movement on Monday, with most locations seeing slight cuts of between N1 and N6 per litre.
In Lagos, terminals including African Terminal, AIPEC, AITEO, BONO, EMADEB and TECHNO OIL recorded modest reductions, with EMADEB cutting its price by N6 to N1,119 per litre — the steepest decline among Lagos depots.
In Port Harcourt, diesel prices moved in different directions: African Terminal and Duport raised AGO prices by N68 to N1,503 per litre, while Matrix and Sigmund cut theirs by N20. PMS prices in the city stayed largely steady, trading between N1,120 and N1,126 per litre.
Calabar and Warri also recorded small downward adjustments in petrol prices.
Dangote Refinery still sets the pace — marketers
Managing Director of 11 Plc, Osagie Ogedegbe, said Dangote Refinery now effectively dictates pump prices nationwide since marketers largely source from it and sell at its recommended price. He predicted prices would soon drop further if the naira remains stable and crude prices continue falling, possibly within the week.
Energy analyst Atiemoria Ebhodaghe of Acepontis Ltd attributed the slow price drop to the “rockets and feathers” effect, where marketers raise prices quickly but cut them slowly to clear old, costlier stock. He added that although Dangote now buys local crude in naira, pricing is still dollar-linked, so a weak naira keeps production costs elevated.
A MEMAN source said marketers are still recovering losses from the past 18 months and will only cut prices gradually, noting that this is standard industry practice tied to inventory accounting.
Petroleumprice.ng’s Managing Director, Olitide Jeremiah, said pump prices at filling stations have stayed high despite falling depot and crude prices, with the industry still waiting for marketers to respond. OGSPAN’s National President, Colman Obasi, blamed the lag on an underdeveloped, less dynamic downstream market that adjusts faster to price increases than decreases.
NLC faults government over price standoff
The Nigeria Labour Congress blamed the government for what it called marketers’ excessive pricing power, saying its earlier warnings against monopoly in the downstream sector have now been vindicated.
An NLC official told Vanguard that the government created the conditions for marketers to dominate the market unchecked, arguing that genuine deregulation requires competition and transparency, not a handful of dominant players setting prices at will.
The labour body called on the Federal Government to dismantle monopolistic practices, promote real competition and tighten regulatory oversight so Nigerians can finally benefit from falling global oil prices.
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