MEMAN rejects FG’s ₦1,350 petrol price ceiling, warns it won’t fix supply

The Major Energies Marketers Association of Nigeria (MEMAN) has opposed the Federal Government’s proposed ₦1,350-per-litre ceiling on petrol costs. The association warned that arbitrary price limits could distort competition without solving supply and distribution problems.

MEMAN spoke during its third-quarter press engagement held virtually on Thursday in partnership with S&P Global Energy. It called for transparent, market-driven pricing, better logistics and lower operating costs.

Price cap under review

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had disclosed that the Federal Government was negotiating a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost. Under the plan, refiners and importers would initially absorb costs above the ceiling and recover the shortfall when market conditions improved. The mechanism would be reviewed monthly.

Oyedele said the plan was designed to moderate price swings, not reinstate the petrol subsidy removed in May 2023. He described it as price modulation, insisting it was neither a subsidy nor conventional price control. Questions remain over how suppliers would finance the extra costs and the conditions for recovering losses.

MEMAN maintained that government-imposed ceilings would not address the sector’s underlying challenges. "Government arbitrary price caps are not the solution to petroleum market challenges," the association said. It argued that a competitive market with predictable supply arrangements would be more sustainable than restrictions that could discourage investment or disrupt product availability.

Marketers seek supply reforms

MEMAN called for clearer bulk supply arrangements covering product access, pricing, delivery schedules and contractual obligations. It also urged improvements in inventory visibility, storage capacity, transport coordination and contingency planning. Non-discriminatory access to products and more efficient regulatory processes would encourage competition and improve supply security, it said.

The association commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for progress in digitalising licensing, publishing market data and promoting product quality and fair competition. It stressed the need to enforce quality standards, ensure accurate measurements and guarantee that consumers receive the quantities they pay for.

The engagement also examined global and West African refined petroleum markets. S&P Global Energy highlighted how geopolitical tensions, refining disruptions and shifting supply patterns had contributed to price volatility. MEMAN advocated prioritising domestic refinery output while retaining imports to bridge supply gaps. That would require reliable production, transparent pricing and effective coordination among refiners, importers, depot operators and marketers.

The Federal Government also announced a 30-day petrol discount at Nigerian National Petroleum Company Limited filling stations, prioritising public transport operators. Earlier, the Nigerian National Petroleum Company Limited cut petrol prices at its Abuja filling stations to ₦1,370 per litre, reversing a weekend increase to ₦1,405 per litre. A market survey on Monday, October 12 showed NNPCL outlets in Berger, Wuse Zone 6 and Wuse Zone 4 adjusted prices downwards by ₦35 per litre.

What it means for consumers

For households and businesses, the proposed ceiling is meant to limit petrol price swings. For marketers, its success depends on transparent reimbursement, predictable pricing and assurances that refiners and importers can keep supplying the market without accumulating unsustainable losses.