FG Orders Marketers to Cut Petrol Pump Price as Global Oil Prices Fall

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed petroleum marketers to immediately reduce the pump prices of Premium Motor Spirit (PMS) and other petroleum products to reflect the recent decline in global crude oil prices.

Lokpobiri gave the directive on Monday in Abuja at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum, themed "Beyond Compliance: Certainty and Investment Confidence in Nigeria's Petroleum Sector."

The minister said the easing of geopolitical tensions involving Iran, Israel and the United States had triggered a decline in international oil prices, adding that marketers were expected to pass the benefit on to consumers.

He expressed concern that the reduction in global prices had yet to be reflected at filling stations, stressing that operators should not exploit the deregulated market to make excessive profits.

While acknowledging that market forces would ultimately determine prices under the deregulated regime, Lokpobiri said regulators had a statutory duty under the Petroleum Industry Act (PIA) 2021 to ensure deregulation did not become a platform for profiteering.

"With the de-escalation of tensions between Iran and the United States, there is an expectation that the prices of PMS and other petroleum products should be adjusted downward accordingly," he said.

The minister urged marketers to embrace fair pricing practices to ensure Nigerians benefited from prevailing market realities, while calling on regulators to move beyond compliance by providing the certainty needed to attract long-term investment.

"For too long, the dominant question in our regulatory conversations has been: are operators complying? That question matters. It will always matter. But it is no longer sufficient.

"The more consequential question today is this: are our regulatory authorities doing their job? Is it clear, consistent and predictable enough to give investors the confidence they need to commit capital, not just for one cycle, but for the long term?

"Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward," Lokpobiri said.

He said the full deregulation of the downstream petroleum sector, implemented by President Bola Tinubu, had transformed the industry by encouraging private investment, including the commencement of operations at the Dangote Refinery and other refining projects.

According to him, the policy has also eliminated the recurring fuel shortages that previously plagued the country.

"The sector is now fully deregulated, a bold reform that President Bola Tinubu had the courage to implement. That decision paved the way for the operationalisation of the Dangote Refinery and other refinery projects currently underway.

"It also ensured that artificial scarcity has become a thing of the past.

"You can attest to the fact that since 2023 there has been availability of petroleum products in the country, even with the recent challenges posed by the US-Israeli/Iranian conflict."

Lokpobiri said deregulation should not only focus on pricing but also on consumer protection, insisting that Nigerians must receive 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 PMS, they should receive exactly 10 litres, not less," he warned.

The minister noted that investors increasingly favoured jurisdictions with transparent, predictable and consistent regulatory systems, describing legal advisers as strategic partners whose responsibilities extend beyond interpreting laws.

He said they also play a critical role in shaping investment decisions, improving regulatory design and supporting national economic development.

Lokpobiri urged legal advisers to provide constructive feedback whenever regulations or guidelines create uncertainty capable of discouraging investment.

According to him, Nigeria's petroleum industry is entering a new era driven by expanding domestic refining capacity, growing private sector participation and emerging opportunities across the midstream and downstream segments.

He said attracting sustainable investment would require policy consistency, transparent regulation, efficient dispute resolution mechanisms and stronger collaboration among government, regulators, industry operators and legal practitioners.

The minister expressed confidence that recommendations from the forum would strengthen governance, improve regulatory certainty and enhance investor confidence in Nigeria's petroleum sector.