FG, Marketers’ Deal Sparks Hope As Petrol Price May Fall Below ₦800

According to industry reports, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, made the disclosure on Monday during a stakeholders’ meeting on cost-reflective pricing of petrol held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The meeting was convened by the Federal Government amid concerns that the decline in global crude oil prices had not resulted in a corresponding reduction in petrol prices across the country.

Maigandi appealed to the government to allow independent marketers to directly import petroleum products while also encouraging the growth of local refineries, particularly the Dangote Petroleum Refinery.

He explained that granting marketers direct access to products from local refineries and allowing them to import when necessary would increase competition, improve supply and ultimately reduce fuel prices for consumers.

The IPMAN president noted that independent marketers had already reduced petrol prices by about ₦125 per litre nationwide and were willing to make further cuts if their acquisition costs decline.

He said petrol prices were gradually adjusting downward and that marketers were committed to ensuring consumers benefit from any reduction in supply costs.

Maigandi expressed optimism that with the Dangote Refinery now allowing independent marketers to purchase products directly, Nigerians would soon begin to experience further relief at filling stations.

Meanwhile, the Minister of State for Petroleum Resources, Heineken Lokpobiri, said the Federal Government was concerned that petrol prices had not reflected the recent decline in global crude oil prices.

Lokpobiri stated that the government had held productive discussions with operators in the downstream sector to find ways of reducing the cost of petrol and ensuring that market realities translate into lower prices for Nigerians.

The minister questioned why petrol prices rose sharply when crude oil prices increased but had not fallen at the same pace following a decline in global crude prices.

He added that marketers had been asked to review their operations and present practical solutions that would help bring down the price of PMS.

According to him, discussions with industry stakeholders were still ongoing, and the government would continue engagements until measures capable of reducing petrol prices were achieved.

The Chief Executive of the NMDPRA, Rabiu Umar, also warned that deregulation of the petroleum sector should not become an avenue for market manipulation or unfair pricing.

Umar stressed that deregulation was designed to promote efficiency, encourage investment and protect consumers, adding that improvements in the market must translate into benefits for Nigerians.

He said the regulatory agency was working with industry players to address the gap between falling crude oil prices and the continued high cost of petrol at retail outlets.

The meeting brought together key stakeholders in the petroleum sector, including IPMAN, major energy marketers, depot operators, transport associations, regulators, representatives of the Dangote Refinery, and officials from major oil companies, as part of efforts to achieve a more transparent and cost-effective petrol pricing system.