Independent petroleum marketers have projected that the pump price of Premium Motor Spirit (PMS), also known as petrol, could drop below N800 per litre as the Federal Government intensifies efforts to ensure lower fuel prices.
The projection followed a stakeholders’ meeting convened by the Federal Government in Abuja on Monday to address the gap between declining global crude oil prices and the relatively high cost of petrol in Nigeria.
The meeting, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), brought together representatives of the Dangote Petroleum Refinery, the Independent Petroleum Marketers Association of Nigeria (IPMAN), major marketers, depot owners and other key players in the downstream sector.
Speaking after the meeting, IPMAN National President, Abubakar Maigandi, urged the Federal Government to restore importation rights for independent marketers while allowing them to buy products directly from the Dangote refinery.
He said increased competition would drive down petrol prices and revealed that independent marketers had already reduced pump prices by about N125 per litre nationwide.
“We are ready to reduce the price to even below N800 per litre. It depends on the cost at which we buy products from the depots and the Dangote refinery,” Maigandi said.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government was concerned that falling international crude oil prices had not translated into a corresponding reduction in domestic petrol prices.
He said marketers had been directed to come up with practical measures to ensure Nigerians benefit from lower replacement costs, warning that deregulation should not be used to sustain high pump prices or generate excessive profits.
Lokpobiri stressed that as marketers replenish stocks at lower costs, the savings should be reflected in ex-depot and retail prices to ease the burden on consumers.
The Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was aimed at finding practical solutions that would encourage competition, protect consumers and ensure that improvements in global market conditions are reflected in domestic fuel prices.
The government said consultations with industry operators are ongoing and expressed optimism that the engagement would lead to further reductions in petrol prices in the coming weeks.
