Energy
Prices of Petrol, Diesel, LPG Will Continue to Fall – NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG) will continue to decline across Nigeria.
Its Chief Executive Officer, Mr. Saidu Mohammed, stated this at the weekend in Ogbele Community, Ahoada East Local Government Area of Rivers State, during the inspection of facilities belonging to Aradel Holdings Plc.
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Mohammed, who attributed the expected price reduction to rising supply, increased competition, and sustained private-sector investment in the oil and gas sector, urged the private sector to pump between $30 billion and $50 billion into the midstream petroleum sector.
Highlighting the expected reduction in energy prices, the NMDPRA boss said Nigerians were gradually moving towards affordable energy as improved supply continues to drive price stability.
“The more supply we have, the lower the price. This is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
Mohammed explained that the removal of fuel subsidy has allowed market forces to function properly, leading to efficiency across the downstream sector.
“Sustained competition, rather than subsidies, will guarantee adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed added.
The agency boss stressed the need for additional refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG, and petrol.
The NMDPRA chief executive said Nigeria’s ambition extended beyond local consumption to exporting petroleum products to Africa, Europe, and the Americas.
“However, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.
Mohammed noted that President Bola Ahmed Tinubu strongly supported a free-market economy, recalling that subsidy removal was the President’s first major policy decision.
According to him, the policy unlocked private sector participation and stimulated investments across the oil and gas value chain.
Assessing the condition of state-owned refineries, Mohammed said their operational conditions largely remained the responsibility of the Nigerian National Petroleum Company Limited (NNPCL).
NMDPRA, he said, was engaging NNPCL to ensure the delivery of crude oil and petroleum products to the Port Harcourt and Warri refineries reserves.
“Delivery of products to the reserves and restoring loading activities at the refineries will boost local economies and revive product distribution within host communities.
“Once product loading resumes, Nigerians will begin to feel the economic impact, even before full refinery operations,” he said.
Mohammed added that Nigeria’s economic growth depended heavily on the rapid expansion of locally owned midstream assets.
Advising the private sector to pump between $30 billion and $50 billion into the midstream petroleum sector, Mohammed said: “I said it two days ago that the midstream sector alone will require about $30 billion to $50 billion investment. Those investments can only come from the private sector, not the government anymore.
“So, as an authority, as a regulator, what we will do is to make sure that we lay down the desired enablers for them to operate and attract the investment that Nigeria needs.
“But first of all, we have to improve how we do things and the improvement can be seen here in a world-class facility being operated by Nigerians. That is the way to go.”
The NMDPRA said the government agency was impressed to see fully-integrated facilities designed, built, operated, and fully-funded by Nigerians
He said the facilities inspected during his three-day operational tour across Rivers State demonstrated that Nigerians had the capacity to design, finance, build, and sustainably operate world-class energy infrastructure.
Mohammed singled out Aradel Holdings, stating that the company had proven that Nigerians could efficiently operate a refinery sustainably without foreign operatorship.
The NMDPRA announced that Aradel’s ongoing expansion would make it possible to load petrol from its facility before the end of next year.
“Aradel has supplied gas to the Nigeria Liquefied Natural Gas (NLNG) for about 13 years, alongside operating an 11,000-barrels-per-day refinery.
“The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria,” he said.
Mohammed called for more investments in refining, noting that the Dangote Refinery alone cannot meet domestic, continental, and global demands.
“Aradel has supplied gas to the Nigeria Liquefied Natural Gas (NLNG) for about 13 years, alongside operating an 11,000-barrels-per-day refinery.
“The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria,” he said.
Mohammed called for more investments in refining, noting that the Dangote Refinery alone cannot meet domestic, continental, and global demands.
He said: “We are not overwhelmed by rising demand, as the company is already expanding its refining capacity beyond current levels.
“We see the demand; we see the market. All we are trying to do is to continue to make those investments that allow us to meet the demand. The demand is very huge.
“We have received support from the regulator. We have seen all kinds of support that continues to make our operations grow from one stage to another.
“It is a great and worthy space for fellow investors and operators to come into. The more we are, the more we build on the redundancy and the resilience of our energy security as a nation.
“We are committed to that course. We are looking at our capacity, and we are just projecting to grow it from one level to another. We are not overwhelmed, but we are doing our best to be part of that solution for energy security.
“Aradel aims to be part of the long-term solution to Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition, and prioritisation of domestic energy needs.”
In what is expected to provide investors and industry stakeholders with a detailed overview of Nigeria’s energy assets and opportunities, her first comprehensive Gas and Power Infrastructure Map will be unveiled at the 25th edition of NOG Energy Week.
It was gathered that the publication, developed by the Gas for Africa programme in partnership with NNPC Limited, will be launched during the annual energy conference in Abuja and is being positioned as a major step towards improving transparency and investment decision-making in Nigeria’s gas and power sectors.
Industry stakeholders have long cited the lack of consolidated and reliable infrastructure data as a major challenge to attracting investment into the sector. The new map seeks to address that gap by providing a single source of information on Nigeria’s gas and power infrastructure, including pipelines, gas processing facilities, power generation assets, LNG terminals and key transmission networks.
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Alongside the infrastructure map, organisers will also release a comprehensive report on Nigeria’s gas sector, which they describe as the most extensive industry intelligence publication ever produced on the country’s gas value chain.
The report examines developments in the sector since 2020 and covers key areas such as the NNPC Gas Master Plan 2026, gas reserves and production trends, pipeline infrastructure, capacity challenges, compressed natural gas (CNG), piped natural gas (PNG), liquefied natural gas (LNG) markets, gas-to-power projects and gas-based industrialisation.
According to the organisers, the publication provides an end-to-end assessment of Nigeria’s gas industry and offers critical insights for investors, policymakers and industry operators.
The launch comes at a time when global energy markets are undergoing significant shifts, driven by geopolitical tensions and increasing demand for alternative and secure energy supplies.
Organisers noted that Nigeria is strengthening its position as a major energy player, supported by rising crude oil production, implementation of a new Gas Master Plan and expanding refining capacity.
They said the infrastructure map and accompanying report are expected to help convert investor interest into concrete projects by providing accurate data on existing assets, infrastructure gaps and future opportunities across the sector.
Attendees at NOG Energy Week will be the first to access both publications as government officials, energy executives, investors and industry leaders gather in Abuja for the five-day event.
The conference is also expected to feature investment discussions, joint venture announcements, memorandum of understanding signings and project partnerships aimed at advancing Nigeria’s energy development agenda.
With preparations gathering momentum ahead of the event, organisers said NOG Energy Week 2026 will provide a platform for stakeholders to examine the future of Nigeria’s energy sector and its role in Africa’s broader energy transition and industrial growth.
OPEC+ ministers decided Sunday to increase oil quotas by a total 188,000 barrels per day for July, in a move analysts said would be unlikely to have an impact on prices sent higher by the Mideast war.
Jorge Leon, analyst at Rystad Energy, said ahead of the expected increase that it “means very little while the Strait of Hormuz remains closed”.
He added: “The market is not short of quota announcements; it is short of physical barrels that can actually move. In that sense, the 188,000 barrels per day increase would be more of a policy signal than a real supply boost.”
The hiked production output was agreed Sunday in a video meeting of oil ministers from key OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, a statement from the organisation said.
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The increase was similar to ones decided in previous months.
The OPEC+ statement said the latest agreed hike was “to support oil market stability” but that the seven countries also saw an opportunity “to accelerate their compensation” in a time of historically high oil prices.
It added that the ministers “reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments announced in November 2023”.
Leon, at Rystad Energy, said that OPEC+ was wary in case the Mideast war changes, and Iran’s stranglehold on the Strait of Hormuz eases.
“When the Strait of Hormuz reopens, the market could move very quickly from fear of shortage to fear of surplus,” he said.
“Returning OPEC+ supply, a stronger US shale response and weaker demand after a period of very high prices could leave the market with a very large oversupply problem,” he said.
AFP
Nigeria, Algeria, and Niger have expressed joint commitment to the Trans-Saharan Gas Pipeline (TSGP) project, which is set to significantly strengthen Africa’s regional energy security.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the disclosure on Thursday at the 5th Ministerial Meeting of the TSGP Steering Committee in Algiers.
The high-level session included ministerial delegations from the three participating nations and a strategic consultation with Algerian President Abdelmadjid Tebboune.
The minister reaffirmed Nigeria’s commitment to the successful delivery of the multi-billion-dollar infrastructure project, describing it as a landmark initiative that will redefine energy security across the continent.
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According to Ekpo, technical and commercial discussions are ongoing among stakeholders to reinforce the regulatory and financial frameworks required for the project’s implementation.
He noted that officials from the three countries have reviewed the latest feasibility reports and officially resolved that the project proceeds immediately into its next development phases.
“This project means a lot to the three countries in terms of industrialisation and job creation,” Ekpo asserted.
“We’ve talked about the Trans-Saharan Gas Pipeline, and the President of Algeria has expressed his interest in the completion of the project,” Ekpo said. “I assure him that on the part of Nigeria, we will do everything possible to ensure the project sees the light of day.”
The minister pledged to work closely with his counterparts in Algeria and Niger, as well as the respective national oil companies — including the Nigerian National Petroleum Company Limited (NNPC Ltd) and Algeria’s Sonatrach — to accelerate project implementation.
On his part, President Tebboune reaffirmed Algeria’s full diplomatic and financial commitment to the pipeline.
He expressed confidence that with the robust political will demonstrated by the three governments, the pipeline will seamlessly move from planning to execution.
Tebboune noted that when completed, the transnational pipeline would deliver energy security, lucrative investment opportunities, and sustainable economic development for millions of people across Africa and European export markets.
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