FG orders marketers to reflect crude oil price drop in petrol prices

uThe Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure petroleum marketers do not exploit consumers through excessive fuel pricing under the deregulated downstream sector.

 

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the directive at the NMDPRA General Counsel and Legal Advisers Forum in Abuja.

 

He said although the downstream sector is deregulated, the regulator has a responsibility under the Petroleum Industry Act (PIA) to prevent profiteering and protect consumers.

 

Lokpobiri noted that with global crude oil prices falling from about 120 dollars per barrel to around 72 dollars, Nigerians expect a corresponding reduction in the pump price of Premium Motor Spirit (PMS), but that has yet to happen.

 

He also directed the NMDPRA to intensify monitoring of filling stations to ensure consumers receive the correct quantity of fuel they pay for.

 

The minister, however, commended the deregulation policy and the operation of local refineries, saying they helped Nigeria avoid fuel shortages despite recent geopolitical tensions in the Middle East.

 

Industry experts attributed the slow reduction in pump prices to marketers selling old, higher-cost stock, exchange rate pressures, and limited competition in the downstream sector.

 

Meanwhile, the Nigeria Labour Congress (NLC) blamed the Federal Government for allowing what it described as monopolistic practices in the petroleum sector, arguing that genuine deregulation requires healthy competition and stronger regulatory oversight.

 

The NLC urged the government to dismantle monopolistic practices and ensure Nigerians benefit from the recent decline in global crude oil prices.