‎FG Orders Marketers to Cut Petrol Prices, Warns Against Profiteering

The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to prevent petroleum marketers from exploiting consumers through excessive petrol prices, saying pump prices are expected to decline following the recent drop in global crude oil prices.
‎
‎The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the directive in Abuja while speaking at the NMDPRA General Counsel and Legal Advisers Forum.
‎
‎Lokpobiri said the easing of geopolitical tensions involving Iran and the United States had contributed to a decline in international crude oil prices, which should ordinarily translate into lower pump prices for Premium Motor Spirit (PMS).
‎
‎”Following the de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” he said.
‎
‎The minister expressed confidence that market forces would eventually drive prices lower but stressed that the regulator must ensure deregulation is not used as a tool for profiteering.
‎
‎”While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the provisions of the Petroleum Industry Act,” Lokpobiri said.
‎
‎He also directed the NMDPRA to intensify surveillance of filling stations to ensure consumers receive the correct quantity of fuel purchased.
‎
‎”When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” he added.
‎
‎Lokpobiri further stated that despite recent geopolitical tensions in the Middle East, Nigeria did not experience fuel shortages due to the deregulation of the downstream petroleum sector and improved domestic refining capacity.
‎
‎He reaffirmed the Federal Government’s commitment to protecting consumers while ensuring the full implementation of the deregulated petroleum market in accordance with the Petroleum Industry Act.