FG Urges Fuel Marketers to Cut Petrol Prices as Crude Oil Drops

 

The Federal Government has urged petroleum marketers to reduce the pump price of Premium Motor Spirit (PMS), commonly known as petrol, in line with the recent decline in global crude oil prices.

The call was made on Monday during a stakeholders' meeting on cost-reflective pricing of PMS organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The meeting brought together representatives of major petroleum marketing companies, depot owners, independent marketers, transport operators and officials of the regulatory authority.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said marketers should not use fuel purchased at higher prices as justification for maintaining high retail prices when replacement costs have declined.

He noted that while petrol pricing is influenced by factors such as exchange rates, transportation expenses and supply chain costs, marketers are expected to adjust pump prices once they begin restocking at lower costs.

Lokpobiri said the benefits of reduced procurement costs should be passed on to consumers without delay to promote fairness and healthy competition in the deregulated downstream petroleum sector.

According to the minister, the removal of fuel subsidy was designed to encourage competition, improve efficiency and deliver better value to Nigerians, rather than create opportunities for excessive pricing or undue profits.

He warned that maintaining petrol prices above prevailing market conditions could worsen inflationary pressures and undermine ongoing efforts to stabilise the economy.

The minister therefore urged marketers to ensure that the recent decline in international crude oil prices is reflected in both ex-depot and retail petrol prices, stressing that Nigerians should benefit from lower fuel costs in a transparent and timely manner.

The government's position comes amid growing public concern over the slow pace of reductions in petrol prices despite sustained declines in global crude oil prices.