Government says Nigerians must benefit from lower fuel replacement costs as it orders stricter price monitoring.
The Federal Government has warned petroleum marketers against using profits from old, high-cost fuel inventories as an excuse to maintain high petrol prices, insisting that Nigerians should benefit from declining global crude oil prices.
The warning was issued during a stakeholders’ meeting on cost-reflective pricing of Premium Motor Spirit (PMS) held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said marketers must ensure that lower fuel replacement costs are reflected in ex-depot and pump prices as new inventories are purchased at cheaper rates.
He stressed that deregulation was introduced to promote competition and efficiency, not to encourage excessive pricing or market distortions, adding that keeping fuel prices artificially high could worsen inflation and increase the cost of transportation, food and other essential goods.
Lokpobiri also directed the NMDPRA to strengthen market surveillance and enforce pricing transparency across the downstream sector to ensure consumers enjoy the benefits of improved market conditions.
Earlier, NMDPRA Chief Executive, Rabiu Umar, said the meeting was convened to address growing concerns over the disconnect between falling international crude oil prices and domestic petrol prices. He noted that while global crude prices have dropped significantly in recent weeks, retail fuel prices have not declined proportionately, stressing that deregulation must balance business sustainability with consumer protection.