Independent petroleum marketers have renewed calls for direct importation of petrol, projecting that pump prices of Premium Motor Spirit (PMS) could fall below N800 per litre if market conditions improve and operators gain greater access to supply sources.
The development followed a high-level meeting between the Federal Government and key downstream petroleum stakeholders in Abuja, where concerns were raised over why declining global crude oil prices had not translated into a corresponding reduction in domestic petrol prices.
The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), focused on achieving cost-reflective pricing for petrol and addressing concerns from consumers over the continued high cost of fuel.
Participants included officials from the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major industry players.
Representatives from Dangote Petroleum Refinery, TotalEnergies, Eterna Plc, and Matrix Energy Group were also present.
The discussions came amid growing public frustration over petrol prices, which have remained elevated despite a recent decline in international crude oil prices following the easing of geopolitical tensions in the Middle East.
IPMAN Seeks Return of Import Licences
The National President of IPMAN, Abubakar Maigandi, argued that allowing independent marketers to import petroleum products directly would increase competition and help drive down prices.
He also urged the government to continue supporting local refining capacity, particularly the Dangote refinery, while ensuring marketers have flexibility to source products from different channels.
“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.
Maigandi said independent marketers had already begun reducing prices and would continue to do so as supply costs decline.
“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,” he stated.
He added that independent marketers had reduced petrol prices by about N125 per litre nationwide and expressed optimism that further reductions were possible.
“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,” Maigandi said.
He welcomed the decision by the Dangote refinery to allow independent marketers to purchase products directly, describing it as a development that could improve competition in the downstream sector.
“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.
Government Questions Petrol Price Adjustment
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government was concerned that petrol prices had not fallen in line with movements in the international crude market.
He explained that while crude prices had dropped significantly after earlier increases caused by global tensions, domestic pump prices had not adjusted at the same pace.
“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,” Lokpobiri said.
He questioned why petrol prices rose quickly when crude prices increased but had not declined proportionately after crude prices moderated.
“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,” he said.
“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. 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 operators had been asked to develop practical measures that would ensure consumers benefit from lower supply costs.
“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.
Lokpobiri declined to provide a specific timeline for price reductions, saying discussions with industry players 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,” he added.
Government Warns Against Excessive Pricing
Before the closed-door meeting, Lokpobiri warned petroleum marketers against maintaining high pump prices by relying on profits from fuel purchased when crude oil prices were higher.
He said operators must distinguish between legitimate replacement costs and temporary gains made from old inventory.
“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management,” he said.
“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined.”
The minister stressed that as marketers replenish their stocks at lower costs, those savings should be reflected in both wholesale and retail prices.
He added that deregulation of the petrol market was designed to encourage competition and efficiency rather than create opportunities for excessive pricing.
According to him, keeping energy costs unnecessarily high could increase inflationary pressures and reduce the economic gains achieved from moderating inflation.
Crude Oil Decline Yet to Reflect at Filling Stations
Lokpobiri noted that international crude prices moved from about $61–$65 per barrel in January to above $118 per barrel in April before declining to around $71 per barrel after tensions in the Middle East eased.
He said the earlier increase in crude prices affected petrol prices but the subsequent decline had not produced a matching reduction.
“Ordinarily, such movements in crude oil prices should be reflected in the pricing of refined petroleum products,” he said.
“While the initial increase in crude prices understandably exerted upward pressure on PMS prices, the subsequent moderation in crude oil prices has not translated into a commensurate reduction in pump prices across the domestic market.”
He noted that petrol prices peaked at about N1,596 per litre in May and currently averaged around N1,296 per litre, adding that the decline had not matched changing market conditions.
NMDPRA Pushes for Market-Based Solutions
The Authority Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was organised to address concerns over petrol pricing and ensure Nigerians benefit from improved global market conditions.
Umar said a similar engagement in the domestic gas sector had helped reduce liquefied petroleum gas prices and expressed confidence that collaboration could produce similar results for petrol.
“Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit,” he said.
“Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks.”
He said regulators and industry operators must work together to identify bottlenecks affecting pricing.
“As a responsible regulatory authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices,” Umar stated.
He emphasised that deregulation was not intended to allow market distortions.
“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value, and protect the public interest,” he added.
Strategic Stock Needed to Prevent Future Shocks
The petroleum minister also called for the urgent operationalisation of the National Strategic Stock, describing it as a vital tool for protecting energy security and reducing exposure to future supply disruptions.
“The National Strategic Stock will strengthen national energy security, reduce exposure to supply disruptions, and moderate price volatility. There is urgency in ensuring that this mechanism becomes fully operational,” he said.
With domestic refining capacity expanding and competition increasing in the downstream sector, stakeholders believe the coming weeks will determine whether petrol prices can move closer to the N800 per litre projection made by independent marketers.
The outcome will depend on how quickly supply costs decline, how much competition improves, and whether operators pass reduced costs through to consumers.