FG convenes Dangote Refinery, marketers over fair PMS pricing

This Video Is Trending Right Now →

Key points

• The Federal Government has convened a stakeholders’ meeting to discuss fair pricing of Premium Motor Spirit (PMS) across Nigeria.
• The meeting brings together Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), PETROAN and other key industry stakeholders.
• The government says declining global crude oil prices should translate into lower domestic petrol prices.
• The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the dialogue is aimed at promoting cost-reflective pricing rather than imposing price controls.
• The meeting follows recent concerns by the FCCPC over the slow reduction in petrol prices despite lower international crude oil prices.

Main Story

The Federal Government on Monday convened a high-level stakeholders’ meeting involving Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and other major players in the downstream petroleum sector to discuss the fair pricing of Premium Motor Spirit (PMS) nationwide.

The meeting, which is being held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, comes amid growing calls for petrol prices to reflect the recent decline in global crude oil prices.

The engagement follows a directive by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging petroleum marketers to reduce the pump prices of PMS and other petroleum products in line with developments in the international oil market.

Participants at the meeting include representatives of TotalEnergies, Eterna, Matrix Energy, the Depot and Petroleum Products Retailers Association of Nigeria (DPRP), the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Nigerian Association of Road Transport Owners (NARTO) and officials of the NMDPRA.

Addressing stakeholders at the opening session, Lokpobiri said the meeting was convened to examine issues affecting the downstream petroleum industry and build consensus on reducing the retail price of PMS.

He noted that the prices of PMS and Automotive Gas Oil (AGO) have far-reaching implic ations for transportation, manufacturing, agriculture and the broader Nigerian economy.

According to the minister, while the downstream sector has been deregulated, deregulation should not be interpreted as an opportunity for excessive profiteering.

He maintained that the recent decline in Brent crude oil prices provides sufficient justification for corresponding reductions in domestic petrol prices.

“Government is committed to protecting the interests of stakeholders, the common man, and the deregulation of the sector,” Lokpobiri said.

Also speaking, the Chief Executive of the NMDPRA, Rabiu Abdullahi Umar, said the meeting was convened at the minister’s directive to promote fair and cost-reflective pricing of petrol across the country.

He observed that although international crude oil prices have moderated over the past six months following earlier market volatility, domestic retail prices have yet to adjust proportionately.

Umar stressed that the objective of the regulator is not to impose prices but to engage industry stakeholders in developing practical solutions that support both consumers and operators.

He said discussions would cover market surveillance, inventory management and measures to strengthen the National Strategic Stock (NSS) to safeguard Nigeria’s energy security.

Following the opening remarks, journalists were asked to leave as stakeholders commenced a closed-door session to deliberate on the issues.

The Issues

Despite the deregulation of Nigeria’s downstream petroleum sector, many consumers have questioned why domestic petrol prices have not fallen in line with declining international crude oil prices.

Industry operators, however, argue that exchange rate volatility, logistics costs, distribution expenses, inventory replacement costs and other operational factors also influence pump prices.

The outcome of the meeting is expected to shape future engagement between government, refiners and marketers on balancing market liberalisation with consumer protection.

What’s Being Said

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said stakeholders should find common ground to ensure petrol prices reflect current market realities, insisting that deregulation should not encourage excessive profiteering.

NMDPRA Chief Executive, Rabiu Abdullahi Umar, said the government seeks collaboration rather than price control, adding that the meeting is intended to facilitate transparent discussions on fair pricing, market surveillance, inventory management and energy security.

What’s Next

The closed-door meeting is expected to produce recommendations on aligning domestic PMS prices with prevailing global crude oil trends while addressing operational concerns raised by refiners and marketers.

Any consensus reached could influence future adjustments in petrol pump prices and strengthen regulatory oversight of the downstream petroleum market.

Bottom Line

The Federal Government’s engagement with Dangote Refinery, petroleum marketers and regulators signals a renewed effort to ensure that the benefits of lower global crude oil prices are reflected in domestic petrol prices while maintaining a competitive and sustainable deregulated market.