Key points
- NMDPRA says it is engaging industry stakeholders to align petrol prices with current market realities.
- The regulator says domestic fuel prices have not reflected the recent decline in global crude oil prices.
- It insists deregulation should promote efficiency and fair pricing, not market distortions.
- The authority plans to strengthen market surveillance and accelerate the National Strategic Stock.
Main story
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working with industry operators to ensure that the pump price of Premium Motor Spirit (PMS), also known as petrol, reflects prevailing market conditions.
The Authority Chief Executive, Mr Rabiu Umar, disclosed this on Monday at a stakeholders’ meeting on cost-reflective pricing of PMS in Abuja.
Umar said the meeting, convened at the directive of the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, was aimed at addressing the disconnect between declining global crude oil prices and domestic retail fuel prices.
He noted that although international crude oil prices had moderated following the easing of geopolitical tensions, retail petrol prices in Nigeria had yet to adjust accordingly.
“As a responsible Regulatory Authority, it is our duty to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices,” he said.
Umar said the government’s deregulation policy was designed to create a competitive and investment-driven petroleum market but stressed that it should not result in unfair pricing.
“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value and protect the public interest,” he said.
He said a similar engagement with stakeholders in the domestic gas sector recently led to a significant reduction in Liquefied Petroleum Gas (LPG) prices, demonstrating the value of dialogue in resolving industry challenges.
According to him, the authority remains committed to ensuring that the benefits of improved market conditions are passed on to consumers promptly while maintaining a viable business environment for operators.
He added that the NMDPRA was strengthening market surveillance, improving inventory management and accelerating the operationalisation of the National Strategic Stock to enhance the country’s energy security.
The issues
Global crude oil prices have declined in recent weeks following the easing of geopolitical tensions, reducing the cost of importing petroleum products. However, domestic petrol prices have remained largely unchanged, prompting calls for lower pump prices. Under Nigeria’s deregulated downstream petroleum market, prices are expected to reflect prevailing market conditions while balancing consumer protection with commercial sustainability.
What’s being said
“Our domestic retail market has not yet harmoniously adjusted to these downward shifts.” — Rabiu Umar, Authority Chief Executive, NMDPRA
“Deregulation is not a licence for market distortion or unfair consumer pricing.” — Rabiu Umar
What’s next
The NMDPRA is expected to continue discussions with marketers and other industry stakeholders to identify operational bottlenecks and facilitate adjustments that reflect lower global crude oil prices while safeguarding market stability.
Bottom line
The NMDPRA is pushing for petrol prices to better reflect falling crude oil prices, signalling closer regulatory engagement to ensure consumers benefit from improved market conditions without undermining the sustainability of the deregulated downstream sector.
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