₦airaland Forum

The Federal Government, yesterday, convened a meeting with major oil marketers where it insisted on reduction in price of petroleum products to be consistent with crash in prices in the international market.

The meeting was to develop measures to reduce the cost of Premium Motor Spirit (PMS) across the country following the decline in global crude oil prices.

At the meeting, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Elijah Shettima, assured Nigerians that the price of PMS will decline.

The meeting, convened by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, was attended by government officials and key operators in the downstream petroleum sector.

Speaking before the commencement of a closed-door meeting with stakeholders in the oil sector, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the meeting was aimed at engaging constructively with industry players with a view to finding common ground to lower the price of PMS.

Emphasising the impact of energy prices on all sectors of the economy, the minister said: “It is very important that we sit down, have an open and very frank discussion on how we can bring down the prices without necessarily affecting you, while also ensuring that the pump price reflects current market realities.”

Lokpobiri said he never faulted marketers when crude oil prices rose to about $118 per barrel and the prices of petroleum products increased. However, he noted that now that Brent crude had fallen below $70 per barrel, there should be no justification for pump prices not to reflect the present reality.

According to him, deregulation does not guarantee excessive profit for marketers, adding that the Petroleum Industry Act (PIA) empowered the government to ensure fair pricing and prevent practices that undermine consumer interests.

The minister said the government preferred dialogue with marketers rather than imposing price controls, noting that the objective was to develop an agreed framework that would lower fuel prices without disrupting investments in the sector.

Earlier, the Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was convened at the directive of the minister to address the disconnect between declining global crude oil prices and the sustained retail price of petrol in the domestic market.

He noted that although international crude oil prices had moderated following the easing of geopolitical tensions, the reduction had yet to be fully reflected in local pump prices.

The NMDPRA boss cited the recent decline in the price of Liquefied Petroleum Gas (LPG) as evidence that constructive engagement between regulators and industry operators could produce positive outcomes.

He urged marketers to participate actively in the discussions to ensure a balance between business sustainability and consumer protection.

SHETTIMA, during an interview with newsmen yesterday in Abuja, said IPMAN’s priority was to ensure that independent marketers could purchase petroleum products directly from Dangote Refinery.

He said the arrangement would improve product availability and encourage lower pump prices.

“Our major concern is to ensure that independent marketers can purchase products directly from the Dangote Refinery. If importation becomes necessary, marketers should also be allowed to import products independently,” he said.

The IPMAN president also called for sustained government support for local refining, noting that the growth of domestic refining capacity remained key to achieving affordable and stable fuel prices.

He urged the Federal Government to create an enabling environment for existing refineries to operate efficiently and to encourage more private investment in the sector.

Addressing concerns over the slow pace of reductions in pump prices, Shettima explained that fuel prices adjust gradually in line with market conditions. He claimed that since prices increased in stages when costs rose, reductions would also occur progressively as procurement costs declined.

Independent marketers, according to him, have reduced pump prices by about N125 per litre nationwide and remain committed to passing on further reductions to consumers.

“We are ready to reduce prices as long as we can maintain reasonable margins and remain profitable. Our goal is to make fuel more affordable for consumers,” he said.

Responding to questions about whether petrol could sell for N900 per litre, Shettima said the possibility largely depended on the cost at which marketers purchased products from depot owners. He explained that if procurement costs continued to decline, marketers would be willing to reduce pump prices further, even below N800 per litre, where market conditions permit.

Dangote Refinery’s decision to allow independent marketers to purchase products directly, he added, was a major milestone for the downstream petroleum sector.

The meeting, convened at the directive of the Ministry of Petroleum Resources by the sector regulator, had in attendance officials from Dangote Refinery, Federal Competition and Consumer Protection Commission Lagos (FCCPC), Major Energies Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) among others.

Standing5:
Pretending to be on the side of the people.

commoditiesnig:
Don’t be silly… FG no do anything Una complain, now they’re taking action Una still Dey criticise!

Isn’t that stupid!

commoditiesnig:
Don’t be silly… FG no do anything Una complain, now they’re taking action Una still Dey criticise!

Isn’t that stupid!

yarimo:
Dangote and oil marketers are all criminals

adekolaelect:
But you don't need meeting to raise up the price

commoditiesnig:
Good action by the FG team..

Dangote and other suppliers should as matter of urgency reduce the fuel prices as crude prices have fallen pre-war prices

This greed is unacceptable

buygala:
Evil refiners and marketers

But na dem dey full Mosque and Church

buygala:
Evil refiners and marketers

But na dem dey full Mosque and Church

Islie:
IPMAN assures Nigerians of continued price reduction



https://guardian.ng/news/fg-insists-on-fuel-price-slash-at-meeting-with-dangote-refinery-marketers/

adekolaelect:
But you don't need meeting to raise up the price