Federal authorities have urged fuel marketers to cut petrol pump prices in line with declines in global crude oil costs, arguing that recent price movements should quickly reach consumers at the retail level. The call was made at a stakeholders’ meeting with marketers and other downstream petroleum operators, as the government seeks tighter linkage between international replacement costs and local prices.
Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri said the fall in Brent crude—down from roughly $118 per barrel earlier in the year to below $70—should be mirrored at the pumps. He pressed marketers on why retail prices for Premium Motor Spirit (PMS) and other petroleum products have not moved in step with the lower international cost of importing fuel.
Quick facts
- Government asked marketers to reduce petrol pump prices to reflect falling international crude costs.
- Minister Heineken Lokpobiri pointed to Brent crude dropping from about $118 a barrel earlier in the year to below $70.
- He questioned why PMS and other products’ retail prices have not fallen alongside lower replacement costs.
- He said deregulation should not be treated as permission for “excessive profits.”
- The meeting included officials from the FCCPC and several downstream industry bodies, among others.
Lokpobiri argued that deregulation was not meant to allow what he described as excessive profit-taking. In his view, the government would prefer open dialogue and “frank talks” rather than heavy-handed enforcement, even as it expects retailers to pass through cost reductions.
The minister also said petroleum marketers should coordinate to reach consensus on a workable approach to lowering pump prices without undermining business viability. “We would rather sit down with you and agree a practical framework than try to impose measures we cannot effectively enforce,” he said, setting the tone for negotiation over compulsion.
The meeting was convened at the instruction of the Ministry of Petroleum Resources, with the sector regulator facilitating the session. Participants included officials from the FCCPC, Dangote Refinery, MEMAN, DAPPMAN, IPMAN, NARTO, and PETROAN, among others.
