FG Demands Fair Petrol Pricing from Dangote, Marketers
The federal government has issued a direct call to Dangote Petroleum Refinery, fuel marketers, and other downstream operators to reduce petrol prices, insisting that Nigerian consumers must benefit whenever global crude oil prices decline. This message was the central focus of a high-level meeting convened at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Participants at the meeting included representatives from Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other key industry players. The discussions centered on achieving cost-reflective and fair pricing in the downstream petroleum sector.
NMDPRA CEO Speaks on Government Directive
Speaking at the meeting, the Chief Executive Officer of NMDPRA, Rabiu Umar, stated that the engagement was held at the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to ensure that petrol prices reflect prevailing market realities. Umar emphasized: "Our objective is not to dictate, but to collaborate. We want to engage in an open, transparent, and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, look into inventory management, and align on how we can collectively accelerate key mechanisms like the National Strategic Stock (NSS) to protect our national energy security."
Umar urged industry players to work together to find a balanced path forward that keeps their businesses viable while ensuring that the public is fairly protected. He noted that global crude oil prices have experienced significant volatility over the past six months due to geopolitical tensions and global conflicts, but have recently moderated as those pressures eased.
Disconnect Between Global Prices and Local Petrol Costs
According to Umar, "Recently, we have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude prices." However, he observed that domestic retail petrol prices have not adjusted in line with the decline in international crude prices. He added: "As a responsible Regulatory Authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices."
Umar stressed that President Bola Ahmed Tinubu's reforms had laid the foundation for a deregulated, competitive, and investment-driven downstream petroleum market. He cautioned that deregulation should not be used to justify excessive pricing, stating: "Let me be clear: deregulation is not a license for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximize value, and protect the public interest."
Transparency and Competition Key to Consumer Welfare
Umar added that marketers' profitability and consumer welfare could coexist if operators embraced transparency and competition. He called for building a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner.
In related news, Dangote Petroleum Refinery recently announced the opening of petrol sales to all licensed marketers, ending its previous consortium marketing arrangement. The decision came alongside a reduction in the refinery's ex-gantry price of petrol to N1,075 per litre from N1,125. Dangote Refinery also aligned its coastal loading price with the ex-gantry price, eliminating the previous pricing difference between the two channels.
The federal government's intervention underscores its commitment to ensuring that Nigerian consumers benefit from lower global crude oil prices, as the NMDPRA continues to monitor market dynamics and engage stakeholders to achieve fair pricing.
