₦airaland Forum

By Agency Report


Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, has directed petroleum marketers to immediately reflect the recent decline in global oil prices by reducing the pump prices of Premium Motor Spirit (PMS) and other petroleum products.

Lokpobiri gave the directive at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum on Monday in Abuja.

The forum is themed “Beyond Compliance Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”

Lokpobiri said that with the de-escalation of tensions between Iran and the United States, there was an expectation that the prices of PMS and other petroleum products would be adjusted downward accordingly.

He expressed concern that the anticipated reduction had yet to be reflected at the pumps, stressing that while market forces under the deregulated regime would ultimately restore price equilibrium, marketers should not exploit the situation to make excessive profits.

The minister said the regulator had a statutory responsibility to ensure that deregulation did not become an avenue for profiteering, adding that this must be carried out in line with the provisions of the Petroleum Industry Act (PIA 2021).

“For too long, the dominant question in our regulatory conversations has been: are operators complying? That question matters. It will always matter. But it is no longer sufficient.

“The more consequential question today is this: are our regulatory authorities doing their job? Is it clear, consistent and predictable enough to give investors the confidence they need to commit capital, not just for one cycle, but for the long term?

“Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward,” he said.

Lokpobiri, while urging marketers to comply with the principles of fair pricing to ensure that consumers benefit from the prevailing market realities, urged regulators to move beyond compliance by promoting regulatory certainty to attracting long-term investments.

“The sector is now fully deregulated, a bold reform that President Bola Tinubu had the courage to implement. That decision paved way for the operationalisation of the Dangote Refinery and other refinery projects currently underway.

“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 products in country even with the recent challenges posed by the US-Israeli /Iranian conflict.

“Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product?

“When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less,” he warned.

Lokpobiri said while compliance with regulations remained fundamental, investors were increasingly interested in jurisdictions with clear, consistent and predictable regulatory frameworks.

He described general counsel as strategic partners whose responsibilities extend beyond interpreting laws to shaping investment decisions, improving regulatory design and supporting national development.

According to him, legal advisers should provide constructive feedback whenever regulations or guidelines create uncertainty that could discourage investment.

He said Nigeria’s petroleum sector was entering a new phase characterised by expanding domestic refining capacity, increased private sector participation and emerging opportunities across the midstream and downstream segments.

According to him, attracting investments will require policy consistency, transparent regulation, efficient dispute resolution and strong collaboration among government, regulators, industry operators and legal practitioners.

He expressed confidence that the recommendations from the forum would contribute to improving governance, regulatory certainty and investment confidence in Nigeria’s petroleum sector.(NAN)

casualobserver:
I am not sure it works that way though. The crude Dangote is refining today wasnt bought at todays crude prices. Similarly, importers did not buy their PMS at today's prices. For importers, it takes time for the petrol they bought when crude was >$100 to arrive in the country. thats the petrol they are selling today.

you dont buy crude today refine it today and distribute it to the retail pumps today.

ahmedio2017:
Yes o, the price must go back to #600 per liter

yarimo:
Dangote and the marketers are all criminals

ahmedio2017:
Yes o, the price must go back to #600 per liter

descartes400:
FG has been welding the carrot by 0ffering them several incentives but now, it's time to use the STICK!

What da duck the is the president doing who also act as the Minister of petroleum?

casualobserver:
I am not sure it works that way though. The crude Dangote is refining today wasnt bought at todays crude prices. Similarly, importers did not buy their PMS at today's prices. For importers, it takes time for the petrol they bought when crude was >$100 to arrive in the country. thats the petrol they are selling today.

you dont buy crude today refine it today and distribute it to the retail pumps today. to ensure refineries have guaranteed feedstock, they pay in advance for their crude at the price prevailing when they buy the crude not the price of crude at the time the PMS comes out of the refinery.

Georgry:


Say that to Dangote, he's the one you should be directing your order to.

ogascomax:
Don't even go there. Because the same argument is applicable when it rises. Do you know the gains they made when it went up. It can't be compared to what the may lost if they sell with the prevailing prices. Just imagine you have 10,000 liters that you bought for 65 naira then it jumped to over 100 naira and it remains there for long that they sold all their products. Then the price gradually coming down and you are buying at that rate and selling little lower than the prices you initial bought. Their compensation for now price their previous gains will make up for it and they won't even lost at all. If they made a profit of 100 millionaires they can only upset the present cost with around 20 million while that individual total profit is around 80 millionaire.