The Federal Government has commenced consultations with key players in the downstream petroleum sector on the introduction of a cost-reflective and equitable pricing framework for Premium Motor Spirit, PMS, as part of efforts to promote market stability, transparency and long-term sustainability.
The initiative was the focus of a high-level stakeholder engagement convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, where industry operators and government officials examined the changing dynamics of the petrol market and explored measures to establish a pricing system that reflects prevailing market realities while safeguarding the interests of consumers, investors and operators.
According to a statement issued by the Director of the Public Affairs Department at NMDPRA, George Ene-Ita, the meeting also drew lessons from the collaborative approach previously adopted to address price distortions in Nigeria’s domestic Liquefied Petroleum Gas, LPG, market, with participants seeking similar consensus-driven solutions for the PMS market.
Speaking at the session, the Authority Chief Executive of the NMDPRA, Mallam Rabiu A. Umar, said the engagement was aimed at fostering transparent, inclusive and solution-driven discussions to tackle emerging challenges in the downstream sector.
He added that the initiative would strengthen market surveillance and enhance Nigeria’s energy security by promoting a more efficient and resilient petroleum market.
The Minister of State for Petroleum Resources, Oil, Senator Heineken Lokpobiri, who chaired the engagement, received recommendations from stakeholders and reiterated the Federal Government’s commitment to building a stable, transparent and competitive downstream petroleum industry.
Lokpobiri said the government would continue to work closely with industry stakeholders to implement policies that boost investor confidence, protect consumers, encourage fair competition and support Nigeria’s long-term economic growth and energy security.
He further assured participants that the stakeholder consultations would continue until a mutually acceptable and sustainable pricing framework is achieved in the near term.
