Independent petroleum marketers have called on the Federal Government to restore the rights of marketers to independently import Premium Motor Spirit (PMS), popularly known as petrol, arguing that increased competition in the downstream petroleum sector could drive pump prices below ₦800 per litre.
The demand comes amid renewed efforts by the Federal Government to reduce the cost of petrol across the country, following a sustained decline in international crude oil prices that has yet to be fully reflected in domestic fuel prices.
As part of those efforts, the Federal Government convened a high-level stakeholders’ meeting with key operators in Nigeria’s downstream petroleum industry to examine what officials described as the growing disconnect between falling global crude oil prices and the relatively high pump prices of petrol being paid by consumers.
The meeting, which focused on achieving cost-reflective pricing for Premium Motor Spirit, was held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The engagement brought together representatives of major government agencies, petroleum marketers, refinery operators, depot owners, transport unions and other critical stakeholders involved in the country’s petroleum distribution value chain.
Among those present were officials of the Federal Competition and Consumer Protection Commission (FCCPC), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Retailers Association of Nigeria (DAPPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN), the Nigerian Association of Road Transport Owners (NARTO), and representatives of the Dangote Petroleum Refinery.
Also in attendance were executives from TotalEnergies, Eterna Plc, Matrix Energy Group and senior officials of the NMDPRA.
The meeting comes at a time when petrol prices remain one of the most pressing economic concerns for millions of Nigerians, with households and businesses continuing to grapple with the impact of rising transportation costs, inflation and increased operating expenses.
Pump prices rose sharply in recent months following the surge in global crude oil prices triggered by geopolitical tensions in the Middle East, particularly the conflict involving Iran and the United States.
Although international crude oil prices have since moderated following diplomatic efforts that eased regional tensions, many Nigerians have questioned why domestic petrol prices have not fallen proportionately.
Concerned by the situation, the Federal Government initiated discussions with industry stakeholders to explore practical measures that would ensure consumers benefit from the reduction in global crude oil prices.
Speaking after the meeting, the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to create a more competitive market by permitting independent marketers to import petroleum products directly whenever necessary.
According to him, allowing independent marketers to participate actively in product importation would complement local refining efforts while preventing monopolistic practices that could keep prices artificially high.
Maigandi emphasized that IPMAN remains committed to supporting domestic refining, particularly the operations of the Dangote Petroleum Refinery, but argued that marketers should not be prevented from importing products when market conditions require it.
“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. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said.
He explained that greater competition among suppliers would naturally lead to lower prices, ultimately benefiting consumers across the country.
The IPMAN president also assured Nigerians that independent marketers are prepared to pass on any reduction in product acquisition costs to consumers through lower retail prices.
According to him, marketers have already begun reducing pump prices in response to recent adjustments in wholesale prices.
He noted that unlike previous periods when prices increased gradually across the country, current reductions are also being implemented progressively by marketers nationwide.
“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. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” Maigandi stated.
He expressed optimism that if marketers continue to enjoy direct access to products from local refineries while maintaining the option of importing petroleum products where necessary, petrol prices could fall below the ₦800 per litre mark.
“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 the private depot owners and the Dangote refinery. I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price,” he added.
The marketers’ renewed call for importation rights comes amid increasing competition in Nigeria’s deregulated downstream petroleum sector following the commencement of large-scale production by the Dangote Petroleum Refinery.
Since the removal of fuel subsidies and the liberalisation of the petrol market, pricing has increasingly been determined by market forces, international crude prices, exchange rate movements, logistics costs and competition among suppliers.
Speaking with journalists after the closed-door meeting, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, acknowledged the Federal Government’s concern over current petrol prices, describing them as inconsistent with prevailing global crude oil prices.
According to the minister, discussions with industry operators focused on identifying practical ways of ensuring that reductions in international crude oil prices translate into meaningful relief for Nigerian consumers.
Lokpobiri explained that government officials challenged marketers to justify why petrol prices had not fallen significantly despite the substantial decline in crude oil prices on the international market.
“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.
“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high. In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel.”
He noted that government officials reminded stakeholders that petrol prices rose rapidly when Brent crude traded above $118 per barrel and questioned why similar speed had not been observed in reducing prices now that crude prices had declined substantially.
“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,” the minister said.
Lokpobiri disclosed that the government had communicated the concerns of Nigerian consumers to marketers and requested that industry operators develop concrete proposals capable of bringing down petrol prices.
According to him, stakeholders agreed to review the issues raised and return with practical recommendations aimed at making fuel more affordable.
“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market,” he stated.
“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.”
Asked when Nigerians should expect a reduction in petrol prices, the minister declined to give a specific timeline, explaining that consultations among stakeholders 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,” Lokpobiri said.
The outcome of the discussions is expected to shape future pricing decisions in Nigeria’s downstream petroleum sector as government, refiners and marketers continue efforts to balance market realities with the need to provide affordable energy for millions of Nigerians.
