The Federal Government on Monday urged petroleum marketers to immediately reduce the pump prices of petrol and other petroleum products to reflect the sharp decline in global crude oil prices, insisting there is “no justification” for maintaining current retail prices.
Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), made the call at a stakeholders’ meeting on cost-reflective pricing of petroleum products organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, on Monday in Abuja.
He said the meeting was convened to build consensus among industry stakeholders on reducing the prices of Premium Motor Spirit (PMS) and other petroleum products in line with prevailing market realities, while protecting investments in the sector.
The minister recalled that marketers adjusted pump prices upward when international crude oil prices increased, saying the same principle should apply now that prices had dropped significantly.
“Brent crude which traded above 118 dollars per barrel in April following geopolitical tensions in the Middle East, has fallen below 70 dollars per barrel after the easing of the tensions.
“Brent crude traded between 61 dollars and 65 dollars per barrel in January before rising above 118 dollars in April due to geopolitical tensions in the Middle East, but it has since fallen to about 70 dollars per barrel.
“We have invited all stakeholders to discuss how to build consensus on bringing prices in line with current economic realities.
“There is no justification why pump prices should not reflect the current market situation,” he said.
Mr Lokpobiri said the Federal Government preferred dialogue and consensus-building with industry operators rather than imposing measures that might be difficult to enforce.
He described energy as a critical driver of the economy, noting that the prices of PMS, Automotive Gas Oil (AGO) and other petroleum products directly affect transportation, production costs and the overall cost of living.
The minister reaffirmed the Federal Government’s commitment to the deregulation of the downstream petroleum sector, stressing that deregulation should not be seen as an avenue for excessive profiteering.
He said government remained committed to sustaining reforms in the sector, protecting legitimate investments and ensuring that Nigerians had access to petroleum products at competitive prices.
Mr Lokpobiri expressed optimism that the meeting would produce practical measures that would reduce energy costs, improve economic outcomes and balance investor confidence with consumer welfare.
He also directed the NMDPRA to strengthen market surveillance and enforce pricing transparency across the petroleum supply chain to ensure that reductions in costs were reflected in ex-depot and retail prices.
The minister further urged the authority to fast-track the operationalisation of the National Strategic Stock to enhance energy security, minimise supply disruptions and moderate price volatility.
He called on industry stakeholders to support the regulatory framework and collaborate with government in building a stable, transparent and competitive downstream petroleum market.
The News Agency of Nigeria reports that shortly after the opening session, the minister and regulators proceeded into a closed-door meeting with industry stakeholders.
Those in attendance included representatives of the Federal Competition and Consumer Protection Commission, FCCPC, Independent Petroleum Marketers Association of Nigeria (IPMAN), as well as Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN.
Others are Major Energies Marketers Association of Nigeria, MEMAN, Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, and the Nigerian Association of Road Transport Owners, NARTO, among others.
NAN
