Oil marketers pledge to reduce high petrol prices after FG meeting

The Federal Government says oil marketers have assured it that they will work towards reducing the high cost of Premium Motor Spirit (PMS), also known as petrol, following concerns over current pump prices. Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the disclosure while briefing journalists after a meeting with oil marketers on petroleum product pricing.

The minister maintained that current petrol prices do not reflect prevailing international crude oil prices, despite the recent decline in the global oil market. He said the government had challenged marketers over the slow pace of petrol price reductions despite the significant drop in crude oil prices.

Marketers acknowledge concerns, pledge action

Lokpobiri noted that marketers had acknowledged the concerns and pledged to consider measures to address the issue. “The current prices are not cost-reflective; they are not reflective of the cost of crude oil. But they are also saying that crude oil prices are still high. In fact, somebody told us right there that the crude oil price for Iboe is still over $90 per barrel,” he said.

“But we are saying when it was $118 for Brent crude the price was rapidly going up. Now that the price has come down drastically, why did it not come down the same way?” the minister asked. “But we are continuously engaging ourselves; we have said that, look, these are the issues of concern to the government. They have also said they will go back and think about what we can put together with a view to addressing the issue of high cost of PMS.”

The minister reiterated that while the downstream sector is deregulated, the government remains committed to engaging industry players to ensure consumers benefit from favourable market conditions.

Stakeholders meet in Abuja to find solutions

The meeting brought together key stakeholders across Nigeria’s downstream petroleum sector to explore practical ways of reducing petrol prices while maintaining a stable and competitive market. Government officials stressed that lower global crude oil prices should translate into more affordable petroleum products for Nigerians.

The Federal Government convened the meeting at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. Participants included Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), PETROAN, MEMAN, DAPPMAN, IPMAN, NARTO, TotalEnergies, Eterna, Matrix Energy, DPRP and other industry stakeholders.

Lokpobiri said deregulation should not encourage profiteering, stressing that declines in Brent crude prices should be reflected in the prices of PMS and Automotive Gas Oil (AGO), given their impact on the wider economy. He called on stakeholders to reach a consensus on practical measures that would lower fuel prices while protecting the interests of consumers and legitimate operators.

NMDPRA Chief Executive Rabiu Abdullahi Umar said the meeting was convened to promote cost-reflective pricing and urged stakeholders to collaborate on inventory management, market monitoring and national fuel reserves. The engagement followed growing concerns by the Federal Government that recent declines in international crude oil prices have not been adequately reflected in domestic petrol prices.

Regulators intensify scrutiny of petrol pricing

Regulators have recently intensified scrutiny of petrol pricing, arguing that consumers should benefit more quickly from favourable developments in the international oil market. On June 28, 2026, the FCCPC expressed concern over what it described as the slow reduction in petrol prices by refiners, depot owners, marketers and retailers despite the sharp decline in global crude oil prices.

The Commission said its market surveillance showed that recent reductions in gantry and retail prices were not commensurate with the significant fall in crude oil prices on the international market. According to the FCCPC, petroleum prices in Nigeria typically rise rapidly whenever global crude oil prices increase, but consumers have yet to enjoy similar benefits from the recent decline in international prices.

The Commission urged operators in the downstream petroleum sector to ensure that domestic pricing more accurately reflects prevailing market conditions.

For Nigerian consumers, the latest engagement between the Federal Government and industry stakeholders signals renewed efforts to ensure that the benefits of lower global crude oil prices are passed on through more affordable petrol prices. If marketers follow through on their pledge, it could provide some relief to households and businesses struggling with high energy costs.