FG Meets Dangote Refinery, Marketers to Fast Track Petrol Price Reduction as Crude Oil Prices Fall
The Federal Government on Monday convened a closed-door meeting with the management of Dangote Refinery and major stakeholders in Nigeria’s downstream petroleum sector as part of ongoing efforts to speed up a reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol.
The strategic meeting, PulseNets learned, was held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. It brought together representatives of Dangote Refinery, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Federal Competition and Consumer Protection Commission (FCCPC), alongside other key industry stakeholders.
Also present at the engagement were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy, the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Nigerian Association of Road Transport Owners (NARTO), depot operators, petroleum retailers, and senior officials of the NMDPRA.
The meeting followed recent concerns raised by the FCCPC over what it described as the slow pace of reductions in petrol prices by refiners, depot operators, marketers and retailers despite the sustained drop in global crude oil prices.
In a statement obtained by PulseNets, the Commission, through its Director of Corporate Affairs, Ondaje Ijagwu, warned that operators engaging in unfair pricing practices at the expense of consumers could face regulatory sanctions.
The FCCPC further stated that its ongoing surveillance of Nigeria’s downstream petroleum sector showed that recent cuts in gantry and retail petrol prices had not adequately reflected the significant decline recorded in international crude oil prices.
Speaking during the meeting, the Authority Chief Executive of the NMDPRA, Rabiu Umar, explained that the engagement was convened on the directive of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, to strengthen collaboration among industry players on petroleum pricing and market stability.
Umar noted that while the international crude oil market had experienced considerable volatility over the past six months, recent developments indicated a gradual stabilisation, resulting in lower global crude oil prices.
“We have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude oil prices,” he said.
He, however, observed that the full benefits of the decline in international crude oil prices had yet to be reflected in Nigeria’s domestic retail petrol market.
“Our objective is not to dictate prices but to collaborate with stakeholders. We want to engage in an open, transparent and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, examine inventory management issues, and align on how we can collectively accelerate key initiatives such as the National Strategic Stock to strengthen Nigeria’s energy security,” Umar said.
Also Read: NNPCL Petrol Price Cut Follows Dangote Refinery Gantry Reduction
PulseNets reports that the meeting is expected to produce practical measures that will ensure the gains from falling international crude oil prices are transmitted to Nigerian consumers through lower and more affordable petrol pump prices.
