The Federal Government is holding a closed-door meeting with the management of Dangote Refinery and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), as part of efforts to secure a fair reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, across the country.
The meeting, taking place at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, also includes representatives from the Federal Competition and Consumer Protection Commission (FCCPC) and other key stakeholders in the oil and gas sector.
Representatives and chief executives from TotalEnergies, Eterna, Matrix Energy, Depot and Petroleum Products Retailers Association of Nigeria (DPRP), Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO), and staff members of the NMDPRA are also at the meeting.
The development comes days after the FCCPC raised concerns over the slow pace at which petrol prices are being reduced by refiners, marketers, depot operators, and retailers despite a significant decline in global crude oil prices.
In a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission warned that businesses found taking advantage of consumers through unfair pricing practices could face regulatory action.
The FCCPC said its ongoing monitoring of the downstream petroleum sector revealed that recent reductions in gantry and retail prices have not matched the scale of the decline in international crude oil prices.
Speaking at today’s meeting, the Authority Chief Executive of the NMDPRA, Rabiu Umar, disclosed that the gathering was convened at the directive of Lokpobiri.
He said that over the past six months, Nigeria has navigated considerable volatility in the international crude oil market, adding, “We have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude oil prices.”
According to him, despite these positive signals, the domestic retail market has yet to adjust harmoniously to the downward shifts.
Umar stressed that the objective of the government and the regulator is not to dictate but to collaborate.
“We want to engage in an open, transparent, and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, look into inventory management, and align on how we can collectively accelerate key mechanisms like the National Strategic Stock (NSS) to protect our national energy security,” he added.
A few days ago, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, directed petroleum marketers to immediately reduce the pump prices of petrol and others to reflect the recent decline in global oil prices.
Addressing the audience, Lokpobiri said the stakeholders’ engagement is expected to enable participants to discuss issues affecting the downstream petroleum sector.
He urged stakeholders to find a “common ground” on how to lower the price of PMS, adding that the prices of PMS and Automotive Gas Oil (AGO) affect all sectors of the Nigerian economy.
He maintained that deregulation does not mean excessive profiteering.
The minister said that since Brent crude prices have declined, there is no justification for PMS prices not to reflect the reduction.
“Government is committed to protecting the interests of stakeholders, the common man, and the deregulation of the sector,” he assured.
