Independent petroleum marketers have said the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could drop below ₦800 per litre if the Federal Government allows them to import fuel directly and improves supply conditions within the downstream sector.
The position was made known by the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, during a stakeholders’ meeting on cost-reflective petrol pricing held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The meeting was convened by the Federal Government following concerns that the recent decline in global crude oil prices has not been reflected in domestic petrol prices.
IPMAN Seeks Import Rights
Speaking at the meeting, Maigandi urged the Federal Government to restore the rights of independent marketers to import petroleum products while also supporting local refining capacity, particularly the Dangote Petroleum Refinery and other indigenous refineries.
According to him, allowing IPMAN members to purchase products directly from the Dangote refinery and import fuel independently when necessary would encourage competition, improve supply, and ultimately reduce pump prices.
He stressed that strengthening local refining remains critical to achieving long-term price stability.
Marketers Already Reduced Prices by ₦125
Maigandi disclosed that independent marketers have already reduced petrol prices by approximately ₦125 per litre across the country as supply costs continue to decline.
He explained that price reductions are being implemented gradually across different locations, just as previous increases were introduced at different times.
He added that marketers are prepared to slash prices even further if they are able to access cheaper supplies.
According to him, petrol could sell for less than ₦800 per litre, depending on the cost at which marketers purchase products from private depot owners and the Dangote refinery.
He also welcomed Dangote Refinery’s decision to allow independent marketers to buy products directly, describing the development as a major boost that would soon translate into lower prices for consumers nationwide.
FG Questions High Petrol Prices
Speaking after the meeting, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the Federal Government is concerned that petrol prices have remained high despite the significant drop in international crude oil prices.
He explained that government officials held frank discussions with marketers and industry stakeholders to understand why consumers have not benefited from lower global oil prices.
Lokpobiri maintained that, in his view, current petrol prices do not accurately reflect prevailing crude oil prices.
He noted that marketers argued that crude purchased under existing supply contracts still reflects higher prices, with some claiming cargoes acquired over the past month were based on crude prices exceeding $90 per barrel.
However, the minister questioned why petrol prices rose rapidly when Brent crude exceeded $118 per barrel, yet have failed to decline at the same pace now that global oil prices have fallen significantly.
Government Wants Practical Solutions
Lokpobiri said the Federal Government has communicated the concerns of Nigerian consumers to downstream operators and requested that marketers develop practical measures that would lead to lower petrol prices.
He explained that stakeholders agreed to continue consultations and return with proposals capable of making petrol prices more reflective of current market realities.
Although he declined to give a specific timeline for any reduction, the minister assured Nigerians that discussions are ongoing and that government would provide updates once concrete decisions are reached.
NMDPRA Warns Against Market Distortion
Earlier, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, warned that deregulation should not be used as an excuse for unfair pricing or market manipulation.
He recalled that a similar engagement on the domestic gas market recently produced positive results, leading to noticeable reductions in the price of Liquefied Petroleum Gas (LPG), with expectations of further declines in the coming weeks.
Umar said the success of that dialogue inspired the current engagement on petrol pricing, adding that collaboration between regulators and industry operators remains the most effective way to resolve market challenges.
Falling Crude Prices Yet to Benefit Consumers
The NMDPRA boss acknowledged that international crude oil prices have moderated considerably in recent weeks but lamented that retail petrol prices have not adjusted accordingly.
He said the regulatory authority is working closely with industry players to identify operational bottlenecks responsible for the disconnect between falling replacement costs and sustained pump prices.
According to him, deregulation is designed to promote efficiency, encourage healthy competition, maximise value for consumers, and ensure that improvements in market conditions are reflected promptly in retail prices.
Key Stakeholders Attend Meeting
The Abuja meeting brought together major stakeholders in Nigeria’s downstream petroleum sector, including representatives of the Federal Competition and Consumer Protection Commission (FCCPC), Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Retailers Association of Nigeria (DAPPMAN), Nigerian Association of Road Transport Owners (NARTO), officials of the NMDPRA, representatives of the Dangote Petroleum Refinery, TotalEnergies, Eterna Plc, Matrix Energy Group, and other leading operators.
The stakeholders agreed to continue discussions aimed at ensuring that Nigerians benefit from lower fuel prices as global crude oil costs decline.
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