The Federal Government has called on petroleum marketers to reduce the pump price of Premium Motor Spirit (PMS), also known as petrol, to reflect the recent decline in global crude oil prices, while maintaining that fuel prices remain determined by market forces under the deregulated downstream petroleum sector.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the appeal on Monday in Abuja during the 2026 General Counsel and Legal Advisers’ Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
His remarks came amid growing criticism from consumers and industry stakeholders, who accused marketers of failing to reduce petrol prices despite the recent fall in international crude oil prices.
Lokpobiri said the easing of tensions between Iran and the United States had raised expectations that crude oil prices would decline globally, with a corresponding reduction in the cost of petrol and other petroleum products in Nigeria.
“Following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” Lokpobiri said.
He said although market forces are expected to eventually drive prices to appropriate levels, regulators must prevent the deregulated market from being used to exploit consumers.
“While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act (PIA),” he stated.
The minister explained that the Federal Government no longer fixes petrol prices following the implementation of the Petroleum Industry Act (PIA) 2021, which deregulated the downstream petroleum sector.
He said pump prices are now driven by competition, supply and demand, rather than government intervention.
Lokpobiri, however, noted that the NMDPRA remains responsible for overseeing market operators and ensuring consumers are not subjected to unfair pricing practices.
According to him, deregulation has produced positive results for the petroleum industry by improving the supply of petroleum products and encouraging fresh investment in local refining.
He added that the policy paved the way for the commencement of operations at the Dangote Refinery while also stimulating the development of other refinery projects across the country.
Lokpobiri further said the frequent fuel shortages that once characterised the sector had largely disappeared, adding that petroleum products have remained available nationwide since 2023 despite global market disruptions caused by geopolitical tensions.
“It also ensured that artificial scarcity has become a thing of the past. You can attest to the fact that since 2023 there has been availability of product in the country even with the recent challenges posed by the US-Iran conflict,” he said.
Speaking at the forum, the Authority Chief Executive of the NMDPRA, represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Rabiu Abdullahi Umar, said attention has shifted from enacting the Petroleum Industry Act to ensuring its effective implementation.
He said regulators, legal practitioners and corporate advisers must work together to strengthen compliance with the law and create a stable regulatory environment that will attract investment into the petroleum industry.
“When the Authority established the General Counsel and Legal Advisers Forum, it did so in recognition of a simple reality that effective regulation cannot be achieved through regulations alone,” Umar said.
“The most carefully drafted law, the most comprehensive regulation, and the most robust compliance framework ultimately depend on people for their implementation.”
Also speaking, the Authority’s Secretary and Legal Adviser, Dr. Joseph Tolorunse, said maintaining regulatory certainty is essential to attracting investors and sustaining growth in Nigeria’s petroleum sector.