FG orders Dangote Refinery, marketers to cut petrol prices as global crude falls
By Aboki Forex —
The federal government has directed Dangote Petroleum Refinery, fuel marketers, and other downstream operators to reduce petrol prices, insisting that Nigerians must benefit from the decline in global crude oil prices. The directive came during a high-level meeting at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Meeting focuses on fair pricing and market realities
Participants at the meeting included Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other industry players. They discussed cost-reflective and fair pricing.
The Chief Executive Officer of the NMDPRA, Rabiu Umar, said the engagement was held at the directive of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri. The goal was to ensure that petrol prices reflect prevailing market realities.
Umar stated: “Our objective 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 urged industry players to work together to find a balanced path forward that keeps businesses viable while ensuring that the public is fairly protected.
Global crude prices drop but retail prices remain high
According to Umar, global crude oil prices have experienced significant volatility over the past six months due to geopolitical tensions and global conflicts. However, prices have recently moderated as those pressures eased.
He said: “Recently, we have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude prices.”
Despite this, Umar noted that domestic retail petrol prices have not adjusted in line with the decline in international crude prices. He said: “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.”
Deregulation is not a licence for unfair pricing
Umar said President Bola Ahmed Tinubu’s reforms had laid the foundation for a deregulated, competitive, and investment-driven downstream petroleum market. But he stressed that deregulation should not be used to justify excessive pricing.
“Let me be clear: deregulation is not a license for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximize value, and protect the public interest.”
Umar added that marketers’ profitability and consumer welfare could coexist if operators embraced transparency and competition. “We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner.”
Dangote Refinery cuts price, opens sales to all marketers
Earlier, Dangote Petroleum Refinery opened the sale of petrol to all licensed marketers, ending its previous consortium marketing arrangement. The decision came alongside a reduction in the refinery’s ex-gantry price of petrol to N1,075 per litre from N1,125. Dangote Refinery also aligned its coastal loading price with the ex-gantry price, eliminating the previous pricing difference between the two channels.
For Nigerian consumers, the sustained high pump prices despite falling global crude costs mean continued pressure on household budgets and business operating expenses. If operators comply with the government's directive, lower petrol prices could ease inflation and reduce transport costs across the country.