The Federal Government has called on petroleum marketers to reduce the pump price of Premium Motor Spirit, also known as petrol, to reflect the recent decline in global crude oil prices.
The government, however, maintained that fuel prices remain determined by market forces under Nigeria’s deregulated downstream petroleum sector.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the call on Monday in Abuja during the 2026 General Counsel and Legal Advisers’ Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
His remarks came amid growing complaints by consumers and industry stakeholders that marketers have failed to adjust petrol prices downward despite the recent fall in international crude oil prices.
Lokpobiri said the easing of tensions between Iran and the United States had raised expectations that crude oil prices would decline globally, with a corresponding reduction in the cost of petrol and other petroleum products in Nigeria.
“Following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” he said.
The minister said although market forces are expected to eventually drive prices to appropriate levels, regulators must ensure that deregulation is not used as an avenue to exploit consumers.
“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 extant provisions of the Petroleum Industry Act,” he stated.
Lokpobiri explained that the Federal Government no longer fixes petrol prices following the implementation of the Petroleum Industry Act 2021, which deregulated the downstream petroleum sector.
According to him, pump prices are now driven by competition, supply and demand, rather than direct government price control.
He, however, said the NMDPRA remains responsible for overseeing market operators and ensuring that consumers are protected from unfair pricing practices.
The minister noted that deregulation has brought some gains to the petroleum industry, including improved product supply and fresh investment in local refining.
He said the policy paved the way for the commencement of operations at the Dangote Refinery and also encouraged the development of other refinery projects across the country.
Lokpobiri added that the frequent fuel shortages that once characterised the sector had largely disappeared, saying petroleum products have remained available nationwide since 2023 despite global market disruptions caused by geopolitical tensions.
“It also ensured that artificial scarcity has become a thing of the past. You can attest to the fact that since 2023 there has been availability of product in the country even with the recent challenges posed by the US-Iran conflict,” he said.
Speaking at the forum, the Authority Chief Executive of the NMDPRA, represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Rabiu Abdullahi Umar, said attention has shifted from enacting the Petroleum Industry Act to ensuring its effective implementation.
He said regulators, legal practitioners and corporate advisers must work together to strengthen compliance with the law and create a stable regulatory environment capable of attracting investment into the petroleum industry.
“When the Authority established the General Counsel and Legal Advisers Forum, it did so in recognition of a simple reality that effective regulation cannot be achieved through regulations alone,” Umar said.
“The most carefully drafted law, the most comprehensive regulation, and the most robust compliance framework ultimately depend on people for their implementation.”
Also speaking, the Authority’s Secretary and Legal Adviser, Dr Joseph Tolorunse, said regulatory certainty remains critical to attracting investors and sustaining growth in Nigeria’s petroleum sector.
The minister’s warning signals renewed pressure on marketers to allow consumers benefit from falling crude oil prices while operating within the rules of the deregulated market.
