The Federal Government has called on petroleum marketers across Nigeria to ensure that reductions in global crude oil prices are reflected in the retail cost of Premium Motor Spirit (PMS), commonly known as petrol.
The appeal was made during a stakeholders’ meeting on cost-reflective fuel pricing held in Abuja, where government officials, regulators, refinery representatives, and major players in the downstream petroleum sector discussed the current state of petrol pricing.
According to the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, marketers should not continue to rely on fuel purchased at previously higher prices as justification for maintaining expensive pump prices.
He explained that while some existing fuel inventories may have been acquired when crude oil prices were significantly higher, new supplies obtained at lower costs should lead to corresponding reductions in both wholesale and retail petrol prices.
The minister stressed that the goal of fuel market deregulation is to encourage healthy competition, improve efficiency, and ensure that consumers benefit from changing market conditions rather than allowing excessive profit margins.
Government officials also expressed concern over the noticeable gap between declining international crude oil prices and the relatively high prices Nigerians continue to pay for petrol. They noted that sustained high fuel prices contribute to increased transportation costs, food prices, and overall inflation across the country.
Representatives of petroleum marketers acknowledged the concerns and indicated their willingness to review pricing structures as replacement costs continue to decline.
Industry leaders also revealed that independent marketers have already implemented price reductions in several locations and suggested that further cuts could follow if wholesale supply prices continue to fall, particularly with increased direct supply from local refineries.
The Federal Government reiterated its commitment to protecting consumers while maintaining a fully deregulated petroleum market that promotes transparency, fair competition, and long-term stability.
Summary
The Federal Government has urged petroleum marketers to reduce petrol prices as global crude oil prices fall. Officials insist that lower fuel replacement costs should benefit consumers and that marketers should not continue using older, more expensive fuel stock as a reason for maintaining high pump prices. Industry stakeholders say further price reductions may be possible if supply costs continue to decline.
The Story Mean Say:
Federal Government don tell fuel marketers make dem no dey use old expensive fuel wey dem buy before take keep petrol price high. Dem say since crude oil don come down for world market, new fuel wey marketers dey buy cheaper suppose make petrol price reduce too. Marketers sef talk say if fuel continue dey cheaper from refinery, dem fit still reduce pump price so Nigerians go feel the relief.
