FG Orders Marketers to Cut Fuel Prices
Petroleum marketers in Nigeria have come under fresh pressure from the Federal Government to lower pump prices, with the authorities insisting that falling crude oil costs must reach ordinary consumers rather than enrich operators in the deregulated downstream market.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, issued the directive in Abuja while delivering the keynote address at the NMDPRA General Counsel and Legal Advisers Forum, themed “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”
Lokpobiri said that although the sector had been fully deregulated, the Nigerian Midstream and Downstream Petroleum Regulatory Authority must guard against profiteering. “While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act,” he said.
The minister noted that despite de-escalation between the United States and Iran, pump prices had not fallen in step with crude. International benchmark Brent crude settled around $72.91 per barrel on Monday, while US West Texas Intermediate rose to about $70.56, down sharply from peaks above $115 recorded earlier in 2026 during the Middle East conflict. WTI had settled below $70 on Friday for the first time since February 27, the day before the start of the Iran war.
The standoff is not new. When crude slid toward $88 a barrel in March, Dangote Refinery lowered its gantry price by N100 to N1,075 per litre, and NNPC cut its Abuja pump price to N1,165. Yet prices climbed again in late March and April as crude rebounded above $115, with NNPC raising Abuja petrol to N1,364 per litre at the end of April. The pattern reflects what analysts call the “rockets and feathers” effect, where prices rise quickly but fall slowly.
Recent days have brought modest relief. NNPC reduced its Abuja pump price to N1,210 per litre, its second cut within a week, following Dangote Refinery’s decision to lower its ex-depot price to N1,125. Depot data showed PMS in Lagos easing by between N1 and N6, with EMADEB cutting from N1,125 to N1,119, while diesel rose at some Port Harcourt terminals.
Managing Director of 11 Plc, Osagie Ogedegbe, said the refinery shapes the market. “Everybody gets petrol from Dangote and sells at the price it advises. This is the outcome of a country having just one refinery,” he said, predicting a downward review “between now and next week if the exchange rate remains stable.” The naira traded at about N1,395 to the dollar in the parallel market.
The Nigeria Labour Congress blamed the government for the deadlock. “We warned government against creating a monopoly in the downstream petroleum industry. Unfortunately, our fears have now been confirmed,” an NLC official said, urging Abuja to dismantle monopolistic practices and strengthen oversight so Nigerians benefit from lower global prices.