The pump price of Premium Motor Spirit (PMS), popularly known as petrol, could fall below ₦800 per litre if independent marketers are allowed to import fuel directly and supply conditions in the downstream petroleum sector improve, industry stakeholders have said.
The position was presented at a stakeholders’ meeting on cost-reflective petrol pricing convened by the Federal Government on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The meeting followed growing concerns that the recent decline in international crude oil prices has not translated into lower retail petrol prices for Nigerian consumers.
Speaking at the meeting, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, urged the Federal Government to restore the rights of independent marketers to import petroleum products while continuing to support domestic refining, particularly the Dangote Petroleum Refinery and other local refineries.
Maigandi said allowing independent marketers to purchase products directly from the Dangote refinery and import fuel when necessary would encourage competition, improve product availability and reduce pump prices.
He disclosed that independent marketers have already reduced petrol prices by about ₦125 per litre in many parts of the country as supply costs continue to decline, adding that further reductions are possible if marketers gain access to cheaper fuel supplies.
According to him, petrol could retail for less than ₦800 per litre depending on the purchase price from the Dangote refinery and private depot owners. He also welcomed Dangote Refinery’s decision to sell products directly to independent marketers, describing the move as one that would boost competition and ultimately benefit consumers.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the Federal Government remains concerned that domestic petrol prices have remained relatively high despite the significant drop in global crude oil prices.
He said discussions with marketers were aimed at identifying the factors preventing consumers from benefiting from lower international oil prices.
Lokpobiri questioned why petrol prices increased rapidly when Brent crude rose above $118 per barrel but have not declined at the same pace now that global oil prices have fallen considerably.
While noting that marketers attributed the situation to existing supply contracts based on previously higher crude prices, the minister said government had directed industry operators to develop practical proposals that would make petrol prices more reflective of prevailing market realities.
Although he did not provide a timeline for any reduction, Lokpobiri assured Nigerians that consultations would continue until concrete measures are agreed upon.
Earlier, Chief Executive of the NMDPRA, Rabiu Umar, warned that deregulation should not be used to justify unfair pricing or market distortions.
He recalled that similar engagements on the domestic liquefied petroleum gas (LPG) market had contributed to lower cooking gas prices and expressed confidence that dialogue with stakeholders in the petrol market could produce similar results.
Umar acknowledged that global crude oil prices have moderated significantly in recent weeks but noted that the expected reduction in retail petrol prices has yet to materialise.
He said the authority is working with industry operators to address operational bottlenecks responsible for the disconnect between falling crude prices and pump prices, stressing that deregulation should encourage competition, improve efficiency and ensure consumers benefit from favourable market conditions.
The meeting was attended by representatives of the Federal Competition and Consumer Protection Commission (FCCPC), IPMAN, the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Retailers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), Dangote Petroleum Refinery, TotalEnergies, Eterna Plc, Matrix Energy Group and other key stakeholders.
Participants agreed to continue consultations aimed at ensuring that lower global crude oil prices are reflected in domestic petrol prices for the benefit of Nigerian consumers.
