ABUJA — The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, on Monday said it would work with industry operators to ensure petrol prices reflect the sharp decline in global crude oil prices, acknowledging that domestic pump prices have yet to adjust to current market realities.
The Authority Chief Executive, NMDPRA, Mr Rabiu Umar, made this known at a stakeholders’ meeting on cost-reflective pricing of PMS on Monday in Abuja. Umar said “the meeting, convened at the directive of the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, aimed at addressing the disconnect between declining global crude oil prices and domestic retail fuel prices.”
“Over the past six months, we have navigated considerable volatility in the international crude oil market. We watched prices surge due to heightened geopolitical tensions and global conflicts,” he said. “Recently, we have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude prices. However, our domestic retail market has not yet harmoniously adjusted to these downward shifts.”
“As a responsible Regulatory Authority, it is our duty to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices,” he said.
He said “President Bola Tinubu had laid a resilient foundation for a deregulated, competitive and investment-driven market.” “But let me be clear: deregulation is not a license for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive,” he added.
He recalled that “a similar stakeholders’ engagement on the domestic gas sector held two weeks earlier had yielded positive outcomes, including a significant reduction in Liquefied Petroleum Gas, LPG, prices.” According to him, “the success of that engagement reinforced the importance of dialogue between regulators and operators in resolving industry challenges.” He added that “the authority is committed to ensuring that the benefits of improved market conditions are passed on to consumers promptly and fairly.”
The authority’s chief executive said it was “focussing on strengthening market surveillance, improving inventory management and accelerating the operationalisation of the National Strategic Stock to enhance energy security.” He called for “practical solutions that would sustain business viability while protecting consumers.”