Petrol price may fall below ₦800/Litre as FG meets marketers

Independent petroleum marketers have urged the Federal Government to restore their right to import petroleum products, insisting that the pump price of Premium Motor Spirit (PMS), also known as petrol, could fall below ₦800 per litre under favourable market conditions.

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, made the appeal on Monday during a stakeholders’ meeting on cost-reflective petrol pricing held 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.

Maigandi called on the government to allow independent marketers to import petroleum products directly while continuing to support local refineries, including the Dangote Petroleum Refinery.

“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 said.

He disclosed that independent marketers had already reduced petrol prices by about ₦125 per litre across the country and pledged further reductions if supply costs continue to decline.

“Presently, we have reduced by ₦125 per litre nationwide.

“At any time when there is a reduction in price, we are ready to reduce the price to even below ₦800 per litre, not even ₦900.

“It depends on the way we buy the product from the private depot owners and the Dangote refinery,” Maigandi added.

He welcomed the Dangote refinery’s decision to allow independent marketers to purchase products directly, describing it as a positive development that would eventually benefit consumers through lower pump prices.

Speaking after the meeting, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the Federal Government was concerned that petrol prices had remained high despite the significant drop in global crude oil prices.

He explained that government had engaged industry operators to ensure Nigerians benefit from the easing of international oil prices.

“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,” Lokpobiri said.

The minister argued that current petrol prices do not accurately reflect prevailing crude oil prices, noting that while pump prices rose quickly when Brent crude exceeded $118 per barrel, they have not fallen proportionately despite the recent decline in global oil prices.

He added that marketers had been asked to return with practical proposals that would lead to lower petrol prices for consumers but declined to give a timeline for any price reduction.

Earlier, the Chief Executive of the NMDPRA, Rabiu Umar, stressed that deregulation should not be used as an excuse for market distortion or consumer exploitation.

He noted that similar engagements in the domestic gas sector had already resulted in significant reductions in Liquefied Petroleum Gas (LPG) prices and expressed optimism that the same collaborative approach could produce lower petrol prices.

Umar maintained that while deregulation promotes market efficiency, it must also protect consumers by ensuring that reductions in international crude oil prices are reflected fairly and promptly at the retail level.

The meeting brought together key stakeholders in Nigeria’s downstream petroleum sector, including officials of the NMDPRA, the Federal Competition and Consumer Protection Commission (FCCPC), IPMAN, the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), representatives of the Dangote refinery, TotalEnergies, Eterna Plc, Matrix Energy and other industry operators.

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