Consumers seem to be getting their wish as Nigeria’s downstream petroleum market witnessed another round of price reductions on Monday, as the Federal Government’s pressure on the relevant stakeholder-segment bore fruits.

Biztellers reports that the Dangote Petroleum Refinery & Petrochemical (DPRP) and several major fuel marketers lowered depot prices for Premium Motor Spirit (PMS), popularly known as petrol, and diesel.

Analysts also trace the development to resolution of the MiddleEast crisis, growing competition and improving product availability.

Prior to the price adjustments, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, declared before a stakeholders’ meeting that the current retail price of petrol does not reflect the sharp decline in price of crude oil.

The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was attended by representatives of the DPRP, Major Energy Marketers Association of Nigeria (MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

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The latest mid-day depot price report showed that the DPRP reduced its ex-depot petrol price in Lagos by N3 per litre, from N1,079 to N1,076 per litre, while maintaining its diesel price at N1,500 per litre.

The reduction comes as several marketers also adjusted their prices downward in an apparent bid to remain competitive in an increasingly price-sensitive market.

Among the major Lagos depots, NIPCO cut its petrol price by N2 to N1,076 per litre, while Pinnacle lowered its price by N3 to N1,075 per litre. Sahara, AIPEC, and African Terminal each reduced prices by N4, bringing their petrol prices to N1,075 per litre.

On its part, Aiteo maintained its petrol price at N1,075 per litre.

Diesel prices also softened across several depots. Rain Oil reduced its AGO price by N15 to N1,430 per litre, while Ibeto, Duport, and Ibachem all cut prices to N1,430 per litre. Dangote Refinery, however, retained its diesel price at N1,500 per litre.

Speaking after a stakeholders’ meeting on Cost-Reflective Pricing of PMS, Lokpobiri noted that while the government did not interfere when petrol prices rose in response to higher crude oil prices, there was now no justification for maintaining current pump prices with Brent crude trading below $70 per barrel.

“NMDPRA never faulted anybody as far as the price was concerned because we are operating a fully deregulated economy.

“But deregulation doesn’t mean excessive profiteering. The Petroleum Industry Act also places responsibility on NMDPRA to ensure that steps are taken to prevent unnecessary profiteering.

“When Brent crude was about $118 per barrel, prices adjusted rapidly. Now that crude prices have dropped significantly, why has the pump price not come down in the same way?” he asked.

The Minister said discussions with marketers were constructive and would continue until a framework was agreed to ensure petrol prices better reflected developments in the global crude oil market.

“We had very fruitful and frank discussions with the marketers and leaders of the downstream sector with a view to driving down the price of PMS. The engagements are still ongoing.

“We told them the concerns of Nigerian consumers, and they have agreed to go back and think of what concrete steps can be taken. Discussions are ongoing, and we believe we are getting somewhere,” he said.

In the same vein, Chief Executive of NMDPRA, Rabiu Umar, said the current disconnect between falling international crude prices and sustained domestic retail PMS prices made the engagement with marketers necessary.

He noted that previous consultations with stakeholders had helped ease prices in the domestic Liquefied Petroleum Gas (LPG) market and expressed confidence that similar dialogue would deliver positive results for petrol consumers.

“Deregulation is not a licence for market distortion or unfair consumer pricing. Sustainable profitability for marketers and consumer welfare are not mutually exclusive,” Umar said.

Meanwhile, IPMAN said petrol prices could decline below N800 per litre as independent marketers begin purchasing products directly from the DPRP.

IPMAN National President, Abubakar Garima, said the association had already reduced petrol prices by about N125 per litre across the country and would continue to lower prices whenever product acquisition costs decline.

A former Governor of Lagos State, Babatunde Fashola (SAN), has claimed that the state government deliberately discounted the price of land allocated to the Dangote Group to ensure that the multi-billion-dollar refinery project was sited in Lagos.

According to Fashola, the decision made by his administration proved to be a strategic investment that ultimately paved the way for what has become the 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals (DPRP) in the Lekki Free Zone.

He made the assertions at the Chartered Institute of Directors (CIoD) Nigeria Women Directors’ Biennial Conference in Lagos, where he delivered a keynote address titled “From Presence to Power: Advancing Women’s Influence in the Boardroom.”

The former governor was quoted by Nairametrics as saying that the breakthrough came after then Commissioner for Commerce and Industry, Olusola Oworu, urged the state government to look beyond immediate revenue from land sales.

According to him, negotiations with the Dangote Group had reached a stalemate after the company considered the state’s asking price for the land too high.

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Fashola explained that Lagos operated a fixed pricing regime for land allocations, making it difficult to depart from established rates. However, Oworu argued that attracting a transformational investment was more valuable than insisting on the land’s full price.

Recalling the deliberations at the State Executive Council (SEC), Fashola quoted the former commissioner as saying that with thousands of hectares in the Lekki Free Zone still awaiting development, it was economically wiser to offer a concession to an investor willing to commit about $19 billion to build a refinery.

According to him, she argued that once such a landmark investment took off, it would attract other investors and significantly enhance the value of the remaining land.

“That was a thinking decision. The whole council then looked at me, and I surrendered,” Fashola said, noting that the intervention altered the course of the discussions and ensured that Lagos retained the project.

He said the experience demonstrated that effective leadership should be judged by competence and strategic thinking rather than gender.

“Ineffectiveness is not a gender thing; it is a human thing,” he added.

Fashola cited the episode as an illustration of the value women bring to leadership when allowed to influence critical decisions, stressing that organisations should place greater emphasis on competence, preparation and impact.

Earlier, speakers at the conference urged public and private institutions to move beyond increasing the numerical representation of women on corporate boards and instead create opportunities for them to shape strategic decisions.

First Vice-President of CIoD Nigeria, Amina Oyagbola, observed that although more women served on boards and occupied leadership positions, they remained underrepresented in board chairmanships and executive offices where major corporate decisions are taken.

She called for stronger mentorship and sponsorship programmes to better prepare more women for top leadership roles.

In his remarks, President and Chairman of the Governing Council of CIoD Nigeria, Adetunji Oyebanji, said board appointments should be based on competence, integrity and professional capability rather than traditional pathways that have historically limited women’s access to senior leadership positions.

Cost of stock of fuel purchased during the face-off between the United States and Iran should not be the determinant of fuel prices in the Nigerian market.

This is the position of the Nigerian government, who also cautioned petroleum marketers against using the cost of old stock as a benchmark for selling prices, insisting that the benefits of lower replacement costs must reflect on what consumers are paying.

According to the government, the continued disconnect between falling international crude oil prices and domestic petrol prices had become a source of concern. She therefore cautioned petroleum marketers against sustaining high pump prices of fuels, particularly the Premium Motor Spirit (PMS), despite declining global crude prices as doing so would deny Nigerians the benefits of lower replacement costs in a deregulated market.

The concerns were expressed at a stakeholders’ meeting on cost-reflective pricing of PMS held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Monday in Abuja.

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It was gathered that the government convened a stakeholders’ meeting on the fair and cost-reflective pricing of PMS, which brought together representatives of the Dangote Petroleum Refinery & Petrochemicals (DPRP), the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PEPROOAN), and other key players in the downstream petroleum sector.

In attendance were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, the Depot and Petroleum Products Retailers Association of Nigeria (DPPRAN), the Major Energy Marketers Association of Nigeria MEMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Nigerian Association of Road Transport Owners (NARTO), as well as officials of the NMDPRA.

During the meeting, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said temporary gains realised from inventories purchased when crude oil prices were higher should not become the basis for sustaining elevated pump prices after global oil prices have declined.

According to the minister, as marketers replenish their stocks at lower costs, reductions in procurement expenses should be reflected promptly in ex-depot and retail petrol prices in line with the principles of a competitive and efficient deregulated market.

Lokpobiri said the government understood that petrol pricing was influenced by several factors beyond crude prices, including exchange rates, logistics and supply chain costs, but insisted that marketers must distinguish between legitimate replacement costs and extraordinary gains arising from inventory management.

“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management.

“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he stated.

The minister added that the government remained committed to protecting consumers in the post-subsidy era, stressing that deregulation was not designed to create opportunities for excessive pricing or market distortions but to deepen competition, improve efficiency and deliver value to Nigerians.

He further warned that sustaining high energy costs beyond what prevailing market conditions justify could worsen inflationary pressures and undermine the gains recorded in moderating the country’s inflation rate.

The minister urged petroleum marketers and operators to immediately transmit the benefits of falling global crude oil prices to Nigerian consumers, warning that deregulation should not be exploited to sustain high petrol prices and generate windfall gains.

His comments come amid growing public concerns over the slow pace of reductions in petrol prices despite the sharp moderation in crude oil prices in recent months.

According to the minister, international crude prices traded between $61 and $65 per barrel in January before surging above $118 per barrel in April following heightened geopolitical tensions in the Middle East. However, prices have since declined to around $71 per barrel after the easing of the tensions.

He noted that while the earlier rise in crude prices exerted upward pressure on petrol prices, the subsequent decline had not been reflected proportionately in domestic pump prices.

“Ordinarily, such movements in crude oil prices should be reflected in the pricing of refined petroleum products. While the initial increase in crude prices understandably exerted upward pressure on PMS prices, the subsequent moderation in crude oil prices has not translated into a commensurate reduction in pump prices across the domestic market.

“This disconnect has understandably raised concerns. PMS peaked at about N1,596 per litre in May and currently sells at around N1,296 per litre. While there has been some reduction, the adjustment has not been commensurate with the decline in underlying market conditions,” the minister said.

The minister warned that keeping energy prices artificially high could worsen inflationary pressures and undermine the economic gains achieved by the government over the past year.

He said energy remained a critical input across virtually every segment of the economy and that unjustified high fuel prices translated into higher transportation costs, food prices and production expenses.

“When the cost of energy remains elevated beyond what prevailing market conditions justify, the results translate to inflation. While considerable progress has been made in moderating inflation from the highs experienced in 2024, when inflation stood at 34 per cent, the latest figures show that inflation currently stands at 15.9 per cent.

“Sustaining high energy costs where underlying market fundamentals have improved risks undermining these gains and slowing down the recovery that Nigerians are beginning to experience,” he added.

The minister, however, commended the economic reforms of President Bola Tinubu, saying the removal of fuel subsidy, the crude-for-naira initiative and other executive interventions had laid the foundation for a more competitive and investment-driven downstream petroleum industry.

He said, “The Federal Government remains unwavering in its commitment to protect public interest post-deregulation. Deregulation was never intended to create opportunities for excessive pricing or market distortions but rather to promote efficiency, deepen competition and ultimately deliver value to Nigerians.”

Lokpobiri consequently directed the NMDPRA to intensify market surveillance and enforce pricing transparency across the downstream value chain.

“I urge the Authority to strengthen market surveillance and enforce pricing transparency across the supply chain to ensure that reductions in underlying costs are reflected promptly in ex-depot and retail prices. Consumers should have confidence that prices are determined fairly and not by information asymmetry or anti-competitive practices.”

He also called for the speedy operationalisation of the National Strategic Stock, describing it as a critical instrument for safeguarding national energy security and moderating future price shocks.

“The National Strategic Stock will strengthen national energy security, reduce exposure to supply disruptions and moderate price volatility. There is urgency in ensuring that this mechanism becomes fully operational,” he said.

Earlier in his opening remarks, the Authority Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was convened at the directive of the minister to address the growing concerns surrounding petrol pricing and ensure that Nigerians benefit from improvements in global market conditions.

Umar recalled that a similar engagement with operators in the domestic gas sector had recently resulted in a noticeable reduction in liquefied petroleum gas prices, expressing optimism that the same collaborative approach could deliver results in the petrol market.

“Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit. Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks.

“It is exactly this kind of tangible success that inspired today’s gathering. When regulators and industry operators sit at the same table, we do not just debate challenges, we engineer solutions,” he said.

The NMDPRA boss acknowledged that global crude prices had moderated significantly in recent weeks but lamented that the domestic retail market had yet to adjust accordingly.

“As a responsible regulatory authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks and directly address this disconnect between falling replacement costs and sustained retail prices.

“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value and protect the public interest.

“Sustainable profitability for marketers and consumer welfare are not mutually exclusive. We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” Umar added.

He stressed that the objective of the meeting was not to dictate prices but to collaborate with industry stakeholders on practical solutions that would keep businesses viable while protecting consumers.