BREAKING: FG Convenes Dangote Refinery And Others For PMS Fair Pricing Talks
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The Federal Government on Monday convened Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other oil and gas stakeholders for a meeting on the fair reduction of the price of Premium Motor Spirit (PMS) nationwide.
The stakeholders’ meeting is currently being held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The development comes days after the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, directed petroleum marketers to immediately reduce the pump prices of Premium Motor Spirit (PMS) and other petroleum products to reflect the recent decline in global oil prices.
What they are saying
At the opening session of the stakeholders’ meeting, attended by Nairametrics, this platform observed the presence of representatives and chief executives from TotalEnergies, Eterna, Matrix Energy, Depot and Petroleum Products Retailers Association of Nigeria (DPRP), Major Energy 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 staff members of the NMDPRA.
Addressing the audience, Lokpobiri said the stakeholders’ engagement is expected to enable participants to discuss issues affecting the downstream petroleum sector.
- He urged stakeholders to find a “common ground” on how to lower the price of PMS, adding that the prices of PMS and Automotive Gas Oil (AGO) affect all sectors of the Nigerian economy.
He maintained that deregulation does not mean excessive profiteering.
The minister said that since Brent crude prices have declined, there is no justification for PMS prices not to reflect the reduction.
- “Government is committed to protecting the interests of stakeholders, the common man, and the deregulation of the sector,” he assured.
More insights
For his part, the Authority Chief Executive of the NMDPRA, Rabiu Abdullahi Umar, disclosed that the gathering was convened at the directive of the Minister of State for Petroleum Resources (Oil) to ensure cost-reflective and fair pricing of Premium Motor Spirit (PMS).
- He said that over the past six months, Nigeria has navigated considerable volatility in the international crude oil market, adding, “We have witnessed a welcome easing of those tensions, which has driven a downward shift and moderation in global crude oil prices.”
He added that despite these positive signals, the domestic retail market has not yet adjusted harmoniously to the downward shifts.
He stressed that the objective of the government and the regulator is not to dictate but to collaborate.
- “We want to engage in an open, transparent, and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, look into inventory management, and align on how we can collectively accelerate key mechanisms like the National Strategic Stock (NSS) to protect our national energy security,” he added.
After the duo spoke, the press was asked to leave the room for a closed-door stakeholders’ meeting.
The closed-door session is ongoing as of the time of filing this report.
What you should know
Newsmen earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) raised concerns over the slow pace at which petrol prices are being reduced by refiners, marketers, depot operators, and retailers despite a significant decline in global crude oil prices.
In a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission warned that businesses found taking advantage of consumers through unfair pricing practices could face regulatory action.
The FCCPC said its ongoing monitoring of the downstream petroleum sector revealed that recent reductions in gantry and retail prices have not matched the scale of the decline in international crude oil prices.