FG Directs NMDPRA to Enforce Petrol Price Reductions Nationwide

The Federal Government has issued a directive to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of fuel pricing across the country and ensure that petroleum marketers do not exploit consumers through arbitrary pump price increases. The instruction was delivered by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.

Lokpobiri stated that while the downstream petroleum sector has been fully deregulated, operators must not leverage deregulation as a justification for imposing unfair prices on consumers. He noted that many Nigerians anticipated a reduction in petrol prices following the recent decline in global crude oil prices and the easing of geopolitical tensions in the Middle East. According to the minister, the drop in international crude prices should logically translate into lower local pump prices for Premium Motor Spirit (PMS), yet this expected adjustment has failed to materialise despite the sharp decline in recent weeks.

The minister expressed concern over the delay in price adjustments, stating, “Following 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 further clarified that while market forces are expected to determine pricing under deregulation, the regulator retains a legal obligation to prevent market abuse and excessive profiteering, with the Petroleum Industry Act providing sufficient authority to ensure fairness and consumer protection.

Beyond pricing, Lokpobiri raised concerns about fuel measurement practices at filling stations, urging the NMDPRA to strengthen oversight to ensure that Nigerians receive the exact quantity of fuel for which they pay. He emphasised, “When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less.” The minister also commended the resilience of Nigeria’s downstream sector, noting that the country avoided major fuel shortages during recent geopolitical tensions, largely due to deregulation and increased domestic refining capacity.

Lokpobiri described the Petroleum Industry Act as a foundational reform for Nigeria’s oil and gas sector but stressed that attracting investment now depends on the consistency and transparency of its implementation. He cautioned that investors are drawn not only by policy frameworks but also by the predictability and stability of the regulatory environment over time. He urged legal advisers and regulatory officials to prioritise enabling investment and business growth rather than creating unnecessary delays through bureaucratic bottlenecks.

He further stated, “We will not be judged by the number of regulations we produce or the volume of guidelines we issue. We will be judged by the investments we attract, the businesses we enable, the jobs we create and the value we leave behind for future generations.” Meanwhile, the Chief Executive Officer of NMDPRA, Rabiu Umar, affirmed that transparency, certainty, and investor confidence are now critical to sector growth, while the agency’s Secretary and Legal Adviser, Joseph Tolorunse, noted that stable fiscal policies and reduced policy reversals will enhance Nigeria’s competitiveness in the global oil and gas market. Reports indicate that petrol prices continue to record slight adjustments across major depots in Lagos, Port Harcourt, Calabar, and Warri as marketers respond to ongoing market dynamics and supply conditions.