The Federal Government has directed petroleum marketers to immediately reduce PMS and other fuel prices in line with the recent decline in global oil prices, warning against profiteering under the deregulated market.
ABUJA – The Federal Government has directed petroleum marketers to immediately adjust the pump prices of Premium Motor Spirit (PMS) and other petroleum products to reflect the recent decline in global crude oil prices.
The directive was issued on Monday by the Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, during the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja.
The forum was themed, “Beyond Compliance: Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”
Lokpobiri said the de-escalation of tensions involving Iran and the United States had contributed to a decline in global oil prices, making it necessary for marketers to reduce the retail prices of PMS and other petroleum products.
He expressed concern that the expected price reductions had yet to be reflected at filling stations across the country.
According to the minister, although market forces under the deregulated petroleum market would eventually restore price equilibrium, marketers must not exploit the situation to make excessive profits at the expense of consumers.
He stressed that regulators have a statutory responsibility to ensure that deregulation does not become an avenue for profiteering, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
“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.
The minister urged petroleum marketers to embrace fair pricing practices to ensure Nigerians benefit from prevailing global market conditions.
He also challenged regulators to move beyond enforcing compliance by creating a transparent and predictable regulatory environment capable of attracting long-term investments.
Lokpobiri described the deregulation of Nigeria’s petroleum sector as a bold reform undertaken by President Bola Tinubu, noting that it had paved the way for the commencement of operations at the Dangote Refinery and other ongoing refinery projects.
According to him, the policy has also eliminated the persistent fuel shortages that previously characterised the downstream sector.
“You can attest to the fact that since 2023 there has been availability of products in the country even with the recent challenges posed by the US-Israeli/Iranian conflict,” he said.
The minister further emphasised that consumer protection should remain a key priority under the deregulated market.
“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.
Lokpobiri added that while regulatory compliance remains essential, investors are increasingly attracted to jurisdictions with clear, consistent and predictable policies.
He described legal advisers as strategic partners whose responsibilities extend beyond legal interpretation to shaping investment decisions, improving regulatory frameworks and supporting national development.
He urged legal practitioners to provide constructive feedback whenever regulations or guidelines create uncertainty capable of discouraging investment.
According to him, Nigeria’s petroleum sector is entering a new phase driven by increased domestic refining capacity, growing private-sector participation and expanding opportunities across the midstream and downstream segments.
He said attracting sustainable investment would depend on policy consistency, transparent regulation, efficient dispute resolution and stronger collaboration among government, regulators, industry operators and legal professionals.
Lokpobiri expressed confidence that recommendations from the forum would strengthen governance, enhance regulatory certainty and boost investor confidence in Nigeria’s petroleum industry.
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