The Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has urged petroleum marketers to reduce the pump prices of petroleum products to reflect the recent decline in global crude oil prices.
Lokpobiri made the call on Monday at a stakeholders’ meeting on cost-reflective pricing of petroleum products organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
According to the minister, the meeting was convened to build consensus among industry players on aligning the prices of Premium Motor Spirit (PMS), popularly known as petrol, and other petroleum products with prevailing market conditions while safeguarding investments in the sector.
He noted that marketers were quick to increase pump prices when international crude oil prices rose and argued that the same market principle should apply now that crude prices have declined.
“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,” Lokpobiri said.
“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.”
The minister said the Federal Government preferred dialogue and collaboration with industry operators rather than introducing measures that could prove difficult to enforce.
He described energy as a key driver of the economy, noting that the prices of petrol, diesel and other petroleum products directly affect transportation costs, production expenses and the overall cost of living.
Lokpobiri reaffirmed the Federal Government’s commitment to the deregulation of the downstream petroleum sector, stressing that deregulation should not become an avenue for excessive profiteering.
He said the government remained committed to protecting legitimate investments while ensuring Nigerians had access to petroleum products at competitive and fair prices.
The minister expressed confidence that the engagement would produce practical solutions capable of lowering energy costs, improving economic performance and balancing 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 are reflected in both ex-depot and retail prices.
Lokpobiri further instructed the regulatory authority to fast-track the operationalisation of the National Strategic Stock to enhance energy security, reduce supply disruptions and help moderate price volatility.
He called on stakeholders across the downstream petroleum sector to support the existing regulatory framework and work with the government to build a stable, transparent and competitive petroleum market.
The meeting was attended by representatives of the Federal Competition and Consumer Protection Commission (FCCPC), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Energies Marketers Association of Nigeria (MEMAN), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Nigerian Association of Road Transport Owners (NARTO), among other industry stakeholders.
