Lokpobiri Summons Oil Industry Stakeholders, Insists on Fair Petrol Pricing

Nigeria's Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has summoned key stakeholders in the oil industry, including refiners, marketers, and regulators, to address the persistent high price of petrol. The emergency meeting focused on ensuring that the recent moderation in international crude oil prices is reflected in lower pump prices for Nigerian consumers.

Despite a significant decline in global crude oil prices from peaks above $120 to around $70 per barrel, retail petrol prices within Nigeria have remained stubbornly high. This discrepancy has raised concerns among consumers and policymakers about the pace of price adjustments in the country's fully deregulated downstream sector.

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Deregulation was never intended to permit excessive pricing or market distortions.

Industry operators attribute the sticky pump prices to factors beyond crude oil costs, such as exchange rate volatility, freight and shipping expenses, financing costs, and distribution charges. However, Lokpobiri warned that deregulation was never intended to permit excessive pricing or market distortions. He stressed that all factors contributing to high prices should be addressed immediately.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reiterated that deregulation does not grant a license for market distortion. While the government remains committed to a deregulated market, operators have a responsibility to promptly and transparently pass on lower replacement costs to consumers. The meeting aimed to foster greater transparency in pricing templates and ensure fair pricing practices.

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With proper depot pricing, marketers can sell petrol below N800.