The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) will continue to decline across the country, driven by improved supply levels, increased competition and sustained private sector investments in the oil and gas industry.

The authority’s Chief Executive, Mr Saidu Mohammed, gave the assurance on Sunday in Ogbele community, Ahoada East Local Government Area of Rivers State, during an inspection of facilities operated by Aradel Holdings Plc.

Mohammed said Nigerians were gradually transitioning towards more affordable energy as enhanced supply conditions continued to stabilise prices nationwide.

“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.

According to him, the removal of fuel subsidy has allowed market forces to function more efficiently within the downstream sector, eliminating distortions that previously constrained supply and pricing.

“Sustained competition, rather than subsidies, will guarantee adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed added.

He stressed the need for additional refineries with advanced conversion capacity capable of producing diesel, fuel oil, naphtha, LPG and petrol, noting that expanding domestic refining remained critical to Nigeria’s energy security.

Mohammed also disclosed that Nigeria’s ambition extended beyond meeting local consumption needs to exporting refined petroleum products to markets in Africa, Europe and the Americas. However, he emphasised that domestic demand must first be adequately satisfied by local operators before large-scale exports could commence.

The NMDPRA chief noted that President Bola Tinubu strongly supported a free-market economic framework, recalling that fuel subsidy removal was the President’s first major policy decision upon assumption of office.

According to him, the policy unlocked private sector participation and stimulated investments across the entire oil and gas value chain.

On the operational status of state-owned refineries, Mohammed said responsibility largely rested with the Nigerian National Petroleum Company Limited (NNPCL), adding that NMDPRA was engaging the company to ensure the delivery of crude oil and petroleum products to the Port Harcourt and Warri refineries.

“Delivery of products to the reserves and restoration of loading activities at the refineries will boost local economies and revive product distribution within host communities,” he said.

“Once product loading resumes, Nigerians will begin to feel the economic impact, even before full refinery operations,” Mohammed added.

He further stated that Nigeria’s economic growth depended heavily on the rapid expansion of locally owned midstream assets, describing the midstream sector as the country’s strongest driver of economic growth.

Facilities inspected during his three-day operational tour across Rivers State, he said, demonstrated that Nigerian companies had the capacity to design, finance, build and sustainably operate world-class energy infrastructure.

Mohammed singled out Aradel Holdings Plc, noting that the company had proven that Nigerians could efficiently operate a refinery sustainably without foreign operatorship.

He disclosed that Aradel’s ongoing expansion programme would enable the loading of petrol from its facility before the end of 2027.

“Aradel has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years and operates an 11,000-barrels-per-day refinery,” he said. “The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria.”

Mohammed urged increased investments in refining capacity, stressing that the Dangote Refinery alone could not meet Nigeria’s domestic, continental and global demand.

In his response, the Managing Director of Aradel Holdings Plc, Mr Adegbite Falade, thanked NMDPRA for its regulatory support and continued confidence in indigenous operators.

Falade said the company remained committed to expanding its refining capacity, commercialising gas resources and eliminating routine gas flaring.

“We are not overwhelmed by rising demand, as the company is already expanding its refining capacity beyond current levels,” he said.

“Aradel aims to be part of the long-term solution to Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition and prioritisation of domestic energy needs,” Falade added.