The Federal Government has secured a commitment from fuel marketers and domestic refiners to further reduce petrol prices, following high-level discussions aimed at ensuring lower global crude oil prices are reflected in Nigeria’s retail fuel market.
The closed-door meeting, held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, brought together representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), and major industry associations, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Major Energies Marketers Association of Nigeria (MEMAN), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the recent decline in international crude oil prices should naturally translate into lower petrol prices across the country. He noted that Brent crude has fallen below $70 per barrel after trading above $80 in recent months, significantly reducing the cost of producing refined petroleum products.
Lokpobiri stressed that while Nigeria operates a deregulated downstream petroleum market, deregulation should not be interpreted as an opportunity for excessive profit-taking. He also cautioned marketers against relying on inventories purchased at higher prices to justify maintaining elevated pump prices when replacement costs have fallen.
The Chief Executive of NMDPRA, Rabiu Umar, acknowledged that easing geopolitical tensions and weaker global oil prices have lowered international petroleum product costs, but said domestic retail prices have yet to fully adjust. He explained that the regulator’s objective is to encourage market-driven price adjustments through dialogue rather than administrative price controls, citing recent reductions in liquefied petroleum gas (LPG) prices as evidence that stakeholder engagement can produce positive outcomes.
Speaking after the meeting, IPMAN President Abubakar Shettima said independent marketers had already reduced petrol prices by as much as ₦125 per litre in several parts of the country. He added that if depot prices continue to decline, especially from Dangote Refinery and private storage facilities, retail prices could fall below ₦800 per litre in some locations.
However, PETROAN President Billy Gillis-Harry maintained that while marketers are committed to passing on cost savings to consumers, price reductions must remain commercially sustainable. He noted that operators cannot sell below cost and that domestic pricing will continue to reflect international crude prices, foreign exchange movements, logistics expenses and other operating costs.
The discussions coincided with fresh price cuts across the downstream market. Dangote Refinery lowered its Lagos ex-depot petrol price by ₦3 per litre to ₦1,076, while major depots, including NIPCO, Pinnacle, Sahara and AIPEC, reduced their loading prices by between ₦2 and ₦4 per litre. In Port Harcourt, Matrix Energy cut its depot price by ₦8 to ₦1,087 per litre.
The latest developments signal growing competitive pressure within Nigeria’s deregulated fuel market and could provide some relief for households and businesses if lower depot prices continue to filter through to retail filling stations. Lokpobiri said consultations with industry stakeholders would continue to develop a framework that promotes transparent pricing while ensuring consumers benefit from favourable market conditions. He added that although the government prefers engagement over enforcement, the FCCPC remains prepared to investigate and sanction any evidence of anti-competitive or exploitative pricing practices.
