BREAKING: Petrol Price Could Crash Below ₦800 As FG, Marketers Reach Key Understanding

Independent petroleum marketers have urged the Federal Government to restore their right to import petroleum products, arguing that greater competition and lower supply costs could drive the pump price of Premium Motor Spirit (PMS), also known as petrol, below ₦800 per litre.....KINDLY READ THE FULL STORY HERE▶

The appeal was made on Monday by the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, during a stakeholders’ meeting on cost-reflective petrol pricing held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The meeting was convened by the Federal Government amid growing concerns that recent declines in global crude oil prices have not been reflected in domestic petrol prices.

Maigandi called on the government to permit independent marketers to import petrol directly while continuing to support local refining, including production from the Dangote Petroleum Refinery.

“Our major concern is that IPMAN should be allowed to purchase products directly from the Dangote refinery, and where necessary, independent marketers should also be permitted to import petroleum products themselves. We want to encourage local refining, but the government should also create an enabling environment for refineries to operate efficiently,” he said.

According to him, independent marketers have already reduced petrol prices by about ₦125 per litre across the country and are prepared to implement further reductions if supply costs continue to decline.

“The price is coming down gradually, and we are passing those reductions on to consumers. Across the country, independent marketers have already reduced pump prices by about ₦125 per litre,” Maigandi stated.

He added that petrol prices could fall below ₦800 per litre if marketers are able to purchase products at lower prices from depots and local refineries.

“Whenever our acquisition cost drops, we are ready to reduce pump prices even below ₦800 per litre. It all depends on the prices at which we obtain products from private depot owners and the Dangote refinery,” he said.

Maigandi welcomed Dangote Refinery’s decision to supply products directly to independent marketers, describing it as a development that could eventually lead to lower prices for consumers.

FG Questions Slow Price Reduction

Speaking after the meeting, the Minister of State for Petroleum Resources, Heineken Lokpobiri, said the Federal Government is concerned that falling global crude oil prices have not translated into corresponding reductions in petrol prices.

He disclosed that government officials held extensive discussions with marketers and downstream operators aimed at ensuring Nigerians benefit from lower international crude prices.

“The engagements are ongoing. We had frank and productive discussions with marketers and stakeholders in the downstream sector on ways to reduce the price of PMS,” Lokpobiri said.

According to the minister, current petrol prices do not appear to reflect prevailing crude oil prices, although marketers maintain that their operating costs remain high.

“My view is that current petrol prices are not fully cost-reflective. Marketers have argued that crude prices remain relatively high, but our concern is that when Brent crude exceeded $118 per barrel, pump prices increased rapidly. Now that global crude prices have declined significantly, we expect retail prices to respond accordingly,” he said.

Lokpobiri explained that the government had communicated consumers’ concerns to industry operators and asked them to return with practical proposals that could result in lower pump prices.

“We have made the government’s concerns clear. The marketers have assured us they will review the situation and identify concrete measures that can help reduce the cost of PMS for Nigerians,” he added.

While declining to give a timeline for any price adjustment, the minister said discussions with industry stakeholders remain ongoing.

NMDPRA Calls for Fair Pricing

Earlier, the Chief Executive of the NMDPRA, Rabiu Umar, said deregulation should promote efficiency and consumer welfare rather than create opportunities for market distortion.

He noted that similar engagements in the domestic gas sector had already contributed to reductions in Liquefied Petroleum Gas (LPG) prices and expressed optimism that the same collaborative approach could help lower petrol prices.

“When regulators and industry operators engage constructively, we do more than identify problems—we develop practical solutions,” Umar said.

He acknowledged that international crude oil prices have declined considerably in recent weeks but observed that retail petrol prices have remained largely unchanged.

According to him, the regulator intends to work with marketers to identify operational bottlenecks responsible for the disconnect between falling crude prices and sustained pump prices.

“Deregulation is not a licence for market distortion or unfair pricing. It is designed to improve efficiency, create value and protect consumers. Sustainable profitability for operators and affordable prices for Nigerians can coexist in a transparent and competitive market,” Umar stated.

The stakeholders’ meeting brought together representatives of the Federal Competition and Consumer Protection Commission (FCCPC), IPMAN, the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Retailers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), officials of the NMDPRA, executives of TotalEnergies, Eterna Plc, Matrix Energy Group, and delegates from the Dangote Petroleum Refinery.