The Federal Government has convened a meeting with major oil marketers to develop measures aimed at reducing the cost of Premium Motor Spirit (PMS) across the country following the decline in global crude oil prices.
The meeting, convened by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, had government officials and key operators in the downstream petroleum sector in attendance.

Speaking before the commencement of a closed-door meeting with stakeholders in the oil sector the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the meeting was aimed at engaging constructively with industry players with a view to finding common ground on how to lower the price of PMS.
Emphasising the impact of energy prices on all sectors of the economy, the minister said, “It is very important that we sit down, have an open and very frank discussion on how we can bring down the prices without necessarily affecting you, while also ensuring that the pump price reflects current market realities.”

Lokpobiri said he never faulted marketers when crude oil prices rose to about $118 per barrel and the prices of petroleum products increased. However, he noted that now that Brent crude has fallen below $70 per barrel, there is no justification for pump prices not to reflect the current reality.
He stressed that deregulation does not guarantee excessive profits for marketers, adding that the Petroleum Industry Act (PIA) empowers the government to ensure fair pricing and prevent practices that undermine consumer interests.

The minister said the government preferred dialogue with marketers rather than imposing price controls, noting that the objective was to develop an agreed framework that would lower fuel prices without disrupting investments in the sector.
He added that while the government would continue to protect the interests of investors, it also had a responsibility to safeguard Nigerians by ensuring that petroleum products remain available at competitive prices.

Earlier, the Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was convened at the directive of the minister to address the disconnect between declining global crude oil prices and the sustained retail price of petrol in the domestic market.
He noted that although international crude oil prices had moderated following the easing of geopolitical tensions, the reduction had yet to be fully reflected in local pump prices.

The NMDPRA boss said the authority would work with marketers to identify operational challenges, including inventory management and market dynamics, that may be delaying price adjustments.
He cited the recent decline in the price of Liquefied Petroleum Gas (LPG) as evidence that constructive engagement between regulators and industry operators could produce positive outcomes.

According to him, deregulation is intended to promote efficiency, competition and investment, not market distortion or unfair consumer pricing.
He added that the authority was making progress in developing a National Strategic Stock framework to strengthen Nigeria’s energy security and protect the country against future supply disruptions.

He urged marketers to participate actively in the discussions to ensure a balance between business sustainability and consumer protection.