The Federal Government on Monday held a meeting with representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and other oil and gas stakeholders to chart roadmap on fair pricing of Premium Motor Spirit (PMS) nationwide.
The meeting was convened barely a few days after the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, directed petroleum marketers to slash Premium Motor Spirit (PMS) and other petroleum products pump prices based on the recent drop in global oil prices.
Speaking during the meeting attended by representatives of oil marketers, refiners and downstream market supervisory agencies, the minister said the stakeholders’ engagement would enable participants to discuss issues affecting the downstream petroleum sector with a view to frontally addressing them.
Lokpobiri advised the stakeholders to jointly agree on how to lower the prices of PMS and Automotive Gas Oil (AGO) in view of their critical roles across the various sectors of the Nigerian economy, stressing that deregulation does not mean excessive profiteering.
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He maintained that since Brent crude prices had dropped in the global markets, there was no justification for PMS prices not to reflect the reduction in the domestic market.
The minister assured that the Federal Government remained totally committed to protecting the interests of stakeholders, the common man, and the deregulation of the sector.
Speaking at the meeting, the NMDPRA Chief Executive Officer, Rabiu Abdullahi Umar, explained that the was convened at the directive of the minister to ensure cost-reflective and fair pricing of Premium Motor Spirit (PMS).
He noted that over the past six months, Nigeria had been able to respond proactively to the volatility in the international crude oil market and now witnessing the easing of those tensions, which had driven a downward shift and moderation in global crude oil prices.
Umar explained that despite the positive signals in the global oil market, the domestic retail market had not adjusted to the downward trend in oil prices, adding that the objective of the government and the regulator is not to dictate but to collaborate.
He expatiated: “We want to engage in an open, transparent, and solution-oriented dialogue. We want to hear your challenges, discuss market surveillance, look into inventory management, and align on how we can collectively accelerate key mechanisms like the National Strategic Stock (NSS) to protect our national energy security.”
The stakeholders’ meeting was attended by the representatives of Matrix Energy, TotalEnergies, Eterna, Depot and Petroleum Products Retailers Association of Nigeria (DPRP), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Energy Marketers Association of Nigeria (MEMAN), Nigerian Association of Road Transport Owners (NARTO), Independent Petroleum Marketers Association of Nigeria (IPMAN), and staff of the NMDPRA.
It would be recalled that the Federal Competition and Consumer Protection Commission (FCCPC) had, in a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, last week, expressed its concerns over the slow pace at which petrol prices were being reduced by refiners, marketers, depot operators, and retailers despite the drop in global crude oil prices.
The commission warned that businesses found taking advantage of consumers through unfair pricing practices could face regulatory sanctions.
