The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to closely monitor fuel pricing across the country and ensure petroleum marketers do not exploit Nigerians through arbitrary pump price increases.
Politics Nigeria reports that the directive was given by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.
The minister said that although the downstream petroleum sector has been fully deregulated, operators must not use deregulation as an excuse to impose unfair prices on consumers.
Lokpobiri noted that many Nigerians expected a drop in petrol prices following the recent decline in global crude oil prices and easing tensions in the Middle East. According to him, the reduction in international crude prices should ordinarily reflect in local pump prices of Premium Motor Spirit (PMS), widely known as petrol.
However, he expressed concern that this expected adjustment has yet to happen, despite the sharp drop in crude prices in recent weeks.
“Following de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened.”
The minister said while market forces are expected to determine pricing under deregulation, the regulator still has a legal duty to prevent market abuse and excessive profiteering.
He stressed that the Petroleum Industry Act gives the regulator enough authority to ensure fairness in the market and protect consumers from exploitation.
Lokpobiri also raised concerns about fuel measurement practices at filling stations nationwide. He asked the regulator to intensify oversight to ensure Nigerians get the exact quantity of fuel they pay for.
“Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product? When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less.”
The minister further stated that Nigeria’s downstream sector has shown resilience despite recent geopolitical tensions involving the United States and Iran.
He said the country avoided major fuel shortages largely because of deregulation and increased domestic refining capacity.
Lokpobiri described the Petroleum Industry Act as a major foundation for reforming Nigeria’s oil and gas sector. He, however, noted that attracting more investors now depends on how consistently and transparently the law is implemented.
According to him, investors are not only interested in policies on paper but also in how predictable and stable the regulatory environment remains over time.
He urged legal advisers and regulatory officials in the petroleum sector to focus on enabling investment and business growth instead of creating unnecessary delays through regulatory bottlenecks.
According to him, “we will not be judged by the number of regulations we produce or the volume of guidelines we issue. We will be judged by the investments we attract, the businesses we enable, the jobs we create and the value we leave behind for future generations.”
Earlier, Chief Executive Officer of NMDPRA, Rabiu Umar, said the petroleum sector has reached a point where transparency, certainty and investor confidence have become critical to growth.
He explained that while regulatory compliance remains important, the bigger goal is to create a stable and predictable environment that encourages investment.
Umar said implementation of the Petroleum Industry Act has shifted attention from merely having laws to ensuring those laws deliver confidence to investors.
Also speaking at the event, Secretary and Legal Adviser of NMDPRA, Joseph Tolorunse, said regulatory certainty remains essential for long-term industry growth.
He noted that stable fiscal policies and reduced policy reversals will improve Nigeria’s competitiveness in the global oil and gas market.
Meanwhile, petrol prices continued to record slight adjustments across major depots in Lagos, Port Harcourt, Calabar and Warri, as marketers respond to ongoing market changes and supply conditions.
