FG orders fuel marketers to reduce PMS pump prices

The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to closely monitor fuel prices across the country and ensure petroleum marketers do not exploit consumers through arbitrary increases in pump prices.

The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.

Lokpobiri said that although the downstream petroleum sector has been fully deregulated, operators must not use deregulation as a justification for imposing unfair prices on Nigerians.

He noted that many Nigerians expected petrol prices to decline following the recent drop in global crude oil prices and easing geopolitical tensions in the Middle East.

According to the minister, the fall in international crude oil prices should ordinarily translate into lower pump prices for Premium Motor Spirit (PMS), commonly known as petrol.

“Following the de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” he said.

Lokpobiri stressed that while deregulation allows market forces to influence pricing, the Petroleum Industry Act empowers the regulator to prevent market abuse and excessive profiteering.

He urged the NMDPRA to ensure that consumers are protected from unfair pricing practices and exploitation.

The minister also expressed concern over fuel dispensing practices at filling stations, directing the regulator to strengthen oversight to ensure motorists receive the exact quantity of fuel they pay for.

“When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” he said.

Lokpobiri further stated that Nigeria’s downstream petroleum sector had remained resilient despite recent geopolitical tensions involving the United States and Iran, attributing the stability to deregulation and increased domestic refining capacity.

He described the Petroleum Industry Act as a major milestone in reforming Nigeria’s oil and gas sector but noted that investor confidence now depends on the consistency and transparency of its implementation.

According to him, investors are interested not only in policies but also in the predictability and stability of the country’s regulatory environment.

He urged legal advisers and regulators to focus on creating an investment-friendly atmosphere rather than introducing unnecessary regulatory bottlenecks.

“We will not be judged by the number of regulations we produce or the volume of guidelines we issue. We will be judged by the investments we attract, the businesses we enable, the jobs we create and the value we leave behind for future generations,” he said.

Earlier, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said transparency, regulatory certainty and investor confidence have become critical to the growth of the petroleum industry.

He explained that the focus has shifted from merely having laws in place to ensuring that the Petroleum Industry Act delivers a stable and predictable environment capable of attracting long-term investment.

Also speaking, the Secretary and Legal Adviser of the NMDPRA, Joseph Tolorunse, said regulatory certainty remains essential for sustainable industry growth, adding that stable fiscal policies and fewer policy reversals would improve Nigeria’s competitiveness in the global oil and gas sector.

Meanwhile, petrol prices have continued to witness slight adjustments across major depots in Lagos, Port Harcourt, Calabar and Warri as marketers respond to prevailing market conditions and supply dynamics.

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