Stakeholders Signal Further Fuel Price Cuts After Meeting With FG

Stakeholders in Nigeria’s downstream petroleum sector have indicated that the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could decline further following a meeting with the Federal Government.

 

The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), brought together representatives of Dangote Refinery, depot owners and petroleum marketers to discuss cost-reflective fuel pricing amid declining global crude oil prices.

 

Speaking after the meeting in Abuja, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, and the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, said stakeholders had agreed to work towards further reductions in petrol prices across the value chain.

 

They noted that if international crude oil prices continue to fall, the pump price of petrol could eventually drop to around ₦1,000 per litre or lower.

 

Gillis-Harry said the discussions focused on making fuel more affordable for Nigerians while ensuring operators remain profitable.

 

“PETROAN is willing to work with the NMDPRA, the FCCPC, the Minister of Petroleum and all stakeholders to ensure that price reduction is implemented for the benefit of Nigerians.

 

“However, nobody is going to be running a business at a loss because that would mean the end of the business,” he said.

 

He explained that petrol pricing remains largely dependent on international market conditions, stressing that fluctuations in crude oil prices make it impossible to fix a specific pump price.

 

Addressing public expectations that petrol prices should automatically fall whenever crude oil prices decline, Gillis-Harry said the downstream market is influenced by several variables beyond crude prices.

 

“The expectation that because crude oil has come down to about $72 per barrel, petrol prices must immediately drop is not the reality,” he said, adding that crude prices remain volatile and even rose during the stakeholders’ meeting.

 

He maintained that no stakeholder could unilaterally determine fuel prices, noting that all players in the value chain would have to reduce their margins before consumers could benefit from lower prices.

 

Gillis-Harry also emphasised that the Federal Government could not compel marketers to sell below cost.

 

“If you tell us to sell at a price that is not sustainable, then business is closed. We must ensure Nigerians continue to have access to fuel,” he said.

 

He, however, expressed confidence that pump prices would continue to decline gradually, pointing to recent reductions by Dangote Refinery and retail outlets.

 

Similarly, IPMAN President Abubakar Maigandi said stakeholders, including Dangote Refinery and depot owners, assured Nigerians that fuel prices would continue to fall in line with market realities.

 

He added that while the government cannot impose pump prices on marketers, continued declines in crude oil prices would support further reductions.

 

In recent weeks, Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and several independent marketers have reduced petrol prices by about ₦100 per litre, with pump prices currently ranging between ₦1,150 and ₦1,299 per litre in Abuja and neighbouring areas.

 

As of Monday, Brent crude traded at about $71 per barrel, while West Texas Intermediate (WTI) stood at approximately $68 per barrel.