Global oil prices had surged in recent months following geopolitical tensions in the Middle East, particularly between Iran and the United States, but have since declined after diplomatic interventions eased the situation
KaNo —
Independent petroleum marketers have called on the Federal Government to restore importation rights for operators in the downstream sector, arguing that increased competition could significantly reduce the pump price of Premium Motor Spirit (PMS), also known as petrol, to below N800 per litre.
The demand was made on Monday during a high-level stakeholders’ meeting convened by the Federal Government at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, as part of efforts to address the persistent gap between falling global crude oil prices and relatively high domestic petrol prices.
The meeting brought together key industry players, including the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, and the Nigerian Association of Road Transport Owners.
Also in attendance were representatives of major oil and gas firms such as TotalEnergies, Eterna Plc and Matrix Energy Group, as well as officials of the Dangote Petroleum Refinery.
Global oil prices had surged in recent months following geopolitical tensions in the Middle East, particularly between Iran and the United States, but have since declined after diplomatic interventions eased the situation.
However, the reduction has not been fully reflected in the domestic pump price of petrol, prompting the government to engage stakeholders on cost-reflective pricing.
Speaking at the meeting, the National President of IPMAN, Abubakar Maigandi, urged the government to allow independent marketers to import petroleum products directly, stressing that the move would deepen competition and ultimately drive down prices.
“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery,” he said.
He added that while supporting domestic refining capacity particularly the Dangote refinery-remains critical, flexibility in importation would help stabilise supply and pricing dynamics in the market.
Maigandi expressed optimism that petrol prices could drop significantly if the right policies are implemented, noting that independent marketers had already begun reducing pump prices across the country.
“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. Presently, we have reduced by N125 per litre nationwide,” he said.
He further projected that petrol prices could fall below N800 per litre under favourable conditions.
“At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from private depot owners and the Dangote refinery,” he added.
Maigandi also welcomed the decision of the Dangote refinery to allow independent marketers to purchase products directly, describing it as a positive development that would soon translate into lower prices for consumers.
The renewed push for importation comes amid intensified competition in the downstream sector following the deregulation of the petrol market and the commencement of large-scale production at the Dangote refinery.
According to Lokpobiri, the government had engaged industry players in frank discussions aimed at ensuring that Nigerians benefit from reductions in global crude prices.
“The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS,” he said.
“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry,” he stated.
Lokpobiri said the government had communicated its concerns to marketers and directed them to come up with practical solutions that would lead to a reduction in pump prices.
“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he said.
He, however, declined to give a specific timeline for when Nigerians should expect a reduction in petrol prices, noting that consultations were still ongoing.
“As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.
Earlier, the minister had cautioned marketers against using profits from previously acquired high-cost fuel inventories as justification for maintaining elevated pump prices, insisting that the benefits of lower replacement costs must be passed on to consumers.
Industry analysts say the outcome of the ongoing engagements could reshape pricing dynamics in Nigeria’s downstream petroleum sector, particularly as the country navigates the transition to a fully deregulated market driven by competition, local refining and global oil price trends.
For millions of Nigerians grappling with the high cost of living, any reduction in petrol prices is expected to bring much-needed relief, given the central role of fuel costs in transportation, food prices and overall economic activity.
