The Minister of State for Petroleum Resources, Oil, Sen. Heineken Lokpobiri, has urged petroleum marketers to adjust fuel prices in line with the recent drop in international crude oil prices.
Lokpobiri made the call on Monday in Abuja during a stakeholders’ meeting on cost-reflective pricing of petroleum products.
The meeting was organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The minister said the engagement was designed to build consensus among operators, regulators and consumer protection agencies on fair pricing in the downstream petroleum sector.
According to him, the prices of Premium Motor Spirit, Automotive Gas Oil and other petroleum products should reflect current market realities.
Lokpobiri said marketers increased pump prices when global crude oil prices rose and should also reduce prices when international prices fall.
He noted that Brent crude, which had risen sharply following geopolitical tensions in the Middle East, had dropped significantly after the easing of those tensions.
The minister said there was no justification for domestic fuel prices to remain high when the global oil market had changed.
He said the Federal Government preferred consultation and consensus with industry players rather than imposing pricing decisions that may be difficult to enforce.
Lokpobiri reaffirmed the government’s commitment to deregulation in the downstream petroleum sector.
He, however, warned that deregulation should not be used as an excuse for excessive profit-making at the expense of consumers.
The minister said energy prices have a direct impact on transport fares, food prices, production costs and the general cost of living.
According to him, fair and transparent fuel pricing is important to protect both consumers and legitimate investors in the petroleum industry.
He said the government would continue to support reforms that promote competition, efficiency and investment confidence in the sector.
Lokpobiri expressed hope that the meeting would produce practical steps to reduce energy costs and improve economic conditions for Nigerians.
He directed NMDPRA to strengthen market surveillance and ensure pricing transparency across the petroleum supply chain.
The minister said cost reductions should be reflected in both ex-depot and retail pump prices.
He also urged the authority to fast-track the operationalisation of the National Strategic Stock.
According to him, the strategic stock will help improve energy security, reduce supply disruptions and moderate price volatility.
Lokpobiri called on petroleum marketers and other stakeholders to support the regulatory framework for a stable and competitive downstream market.
He said collaboration between government and operators was necessary to build a transparent system that protects consumers while encouraging investment.
After the opening session, the minister and regulators held a closed-door meeting with key industry stakeholders.
Participants included representatives of the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria and the Depot and Petroleum Products Marketers Association of Nigeria.
Others included the Major Energies Marketers Association of Nigeria, the Petroleum Products Retail Outlets Owners Association of Nigeria and the Nigerian Association of Road Transport Owners.
The meeting comes amid growing public concern that reductions in international crude oil prices have not been fully reflected in the cost of petrol and other petroleum products in Nigeria.
Stakeholders said the outcome of the engagement would be important for consumers, transport operators, businesses and investors in the downstream oil sector.
