The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working with industry stakeholders to ensure that the pump price of Premium Motor Spirit (PMS) reflects prevailing market realities.
The Authority Chief Executive, NMDPRA, Mr Rabiu Umar, made this known at a stakeholders’ meeting on cost-reflective pricing of PMS on Monday in Abuja.
Umar said the meeting, convened at the directive of the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, aimed at addressing the disconnect between declining global crude oil prices and domestic retail fuel prices.
“Over the past six months, we have navigated considerable volatility in the international crude oil market. We watched prices surge due to heightened geopolitical tensions and global conflicts.
“Recently, we have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude prices.
“However, our domestic retail market has not yet harmoniously adjusted to these downward shifts.
“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.
He said President Bola Tinubu had laid a resilient foundation for a deregulated, competitive and investment-driven market.
“But let me be clear: deregulation is not a license for market distortion or unfair consumer pricing.
“It is intended to drive efficiency, maximise value and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive,” he added.
He recalled that a similar stakeholders’ engagement on the domestic gas sector held two weeks earlier had yielded positive outcomes, including a significant reduction in Liquefied Petroleum Gas (LPG) prices.
According to him, the success of that engagement reinforced the importance of dialogue between regulators and operators in resolving industry challenges.
He added that the authority is committed to ensuring that the benefits of improved market conditions are passed on to consumers promptly and fairly.
The authority chief executive said it was focussing on strengthening market surveillance, improving inventory management and accelerating the operationalisation of the National Strategic Stock to enhance energy security.
He called for practical solutions that would sustain business viability while protecting consumers.
In a related development, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Elijah Shettima, has assured Nigerians that the price of Premium Motor Spirit (PMS), popularly known as petrol, will decline.
Shettima gave the assurance during an interview with News Agency of Nigeria (NAN) on Monday in Abuja.
He said IPMAN’s priority was to ensure that independent marketers could purchase petroleum products directly from the Dangote Refinery.
The president said that the arrangement would improve product availability and encourage lower pump prices.
“Our major concern is to ensure that independent marketers can purchase products directly from the Dangote Refinery.
“If importation becomes necessary, marketers should also be allowed to import products independently,” he said.
Shettima also called for sustained government support for local refining, noting that the growth of domestic refining capacity remained key to achieving affordable and stable fuel prices.
He urged the Federal Government to create an enabling environment for existing refineries to operate efficiently while encouraging more private investment in the sector.
Addressing concerns over the slow pace of reductions in pump prices, Shettima explained that fuel prices adjust gradually in line with market conditions.
He said that as prices increased in stages when costs rose, reductions would also occur progressively as procurement costs declined.
According to him, independent marketers have reduced pump prices by about ₦125 per litre across the country and remain committed to passing on further reductions to consumers.
“We are ready to reduce prices as long as we can maintain reasonable margins and remain profitable. Our goal is to make fuel more affordable for consumers,” he said.
Responding to questions on whether petrol could sell for ₦900 per litre, Shettima said the possibility depended largely on the cost at which marketers purchased products from depot owners.
He explained that if procurement costs continued to decline, marketers would be willing to reduce pump prices further, even below ₦800 per litre, where market conditions permit.
Shettima said Dangote Refinery’s decision to allow independent marketers to purchase products directly was a major milestone for the downstream petroleum sector.
He expressed confidence that the development would enhance competition, reduce distribution costs and translate into lower pump prices for Nigerians.(NAN)
