The Federal Government has ordered petroleum marketers to immediately reduce the pump prices of Premium Motor Spirit, warning that failure to pass on the benefits of falling global crude oil prices to consumers will result in regulatory actions.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, issued the directive on Monday at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority General Counsel and Legal Advisers Forum in Abuja, themed “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”
Global crude prices had soared to approximately 120 dollars per barrel in the heightened Middle East tensions, before plummeting to around 72 dollars per barrel following the de-escalation of the Iran-United States standoff a decline of roughly 40 percent.
Despite this correction, petrol continues to sell for about 1,200 naira per litre at filling stations nationwide, with consumer groups calling for prices to fall below 1,000 naira noting that PMS sold between 800 and 900 naira per litre before the war.
Lokpobiri emphasised that although the downstream sector has been fully deregulated, this status must not serve as a cover for profiteering.
He instructed the NMDPRA to ensure that marketers do not exploit Nigerians through excessive pricing.
The Federal Competition and Consumer Protection Commission has also warned refiners, importers, depot operators and retail outlet owners against exploiting consumers, citing its ongoing surveillance of the downstream sector, which revealed that gantry and retail prices have not declined in line with falling international crude benchmarks.
Marketers, however, attribute the delay to commercial realities.
A former Managing Director of 11 Plc, Mr. Tunji Oyebanji, stated that crude currently processed by refineries was purchased when prices were higher, and that cheaper crude must be bought, transported, refined, and distributed before consumers can benefit at the pump.
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