independent petroleum marketers have called for the restoration of their rights to import petroleum products, projecting that the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could fall below N800 per litre as the Federal Government intensifies efforts to reduce fuel costs.
The development followed a meeting between the Federal Government and major operators in the downstream petroleum sector, including representatives of the Dangote Petroleum Refinery, over concerns that declining global crude oil prices have not translated into lower petrol prices in the domestic market.
The stakeholders’ meeting on cost-reflective pricing of PMS was held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. It was attended by representatives of the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other key industry players.
Also present were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, officials of the NMDPRA, and delegates from the Dangote refinery.
Petrol prices have remained a major source of pressure for households and businesses across Nigeria, with pump prices rising sharply following the surge in global crude oil prices triggered by geopolitical tensions in the Middle East, particularly between Iran and the United States.
Although crude oil prices have moderated after diplomatic efforts eased the tensions, the reduction has yet to fully reflect in domestic petrol prices. This prompted the Federal Government to convene the meeting to push for a fair adjustment in pump prices.
The National President of IPMAN, Abubakar Maigandi, urged the government to allow independent marketers to import petroleum products directly, arguing that increased competition would help drive down prices.
Maigandi also called for greater support for local refineries, particularly the Dangote Petroleum Refinery, while emphasising the need to give marketers the flexibility to import products when necessary.
“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said on Monday, July 7.
The IPMAN president assured Nigerians that independent marketers were prepared to significantly reduce petrol prices, projecting that pump prices could fall below N800 per litre under favourable market conditions.
“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.
Maigandi added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery. I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”
The renewed push for importation rights comes amid an intense pricing contest in the downstream sector following the commencement of large-scale production at the Dangote refinery and the deregulation of the petrol market.
Speaking to journalists after a closed-door meeting with stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government remained concerned that current petrol prices were not reflecting prevailing crude oil prices in the international market.
He said the government had engaged marketers in frank discussions aimed at ensuring that declining global crude prices translate into lower pump prices for Nigerians.
“The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS.
“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high. In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel.
“But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry,” Lokpobiri said.
The minister said the government had communicated consumers’ concerns to industry operators and asked them to return with practical measures that would lead to lower petrol prices.
“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market.
“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he stated.
On when Nigerians should expect a reduction in petrol prices, Lokpobiri said discussions were still ongoing and declined to provide a timeline.
“As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.
