By Emmanuel Onyedika
The Federal Government has cautioned petroleum marketers against selling Premium Motor Spirit (PMS), commonly known as petrol, at prices that fail to reflect the recent decline in global crude oil prices.
The warning was issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a statement signed by its spokesperson, George Ene-Ita, on Wednesday. The agency stressed that the drop in international crude prices must be mirrored in retail pump prices, in line with the Petroleum Industry Act (PIA) 2021.
NMDPRA said it is closely monitoring depots and filling stations nationwide and will impose sanctions on operators found engaging in price gouging or profiteering. It added that the regulator is collaborating with security agencies and the Federal Competition and Consumer Protection Commission (FCCPC) to safeguard consumers and ensure compliance.
The warning follows remarks by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged regulators to prevent marketers from exploiting consumers. Lokpobiri noted that easing geopolitical tensions between Iran and the United States had contributed to lower global crude prices, and Nigerians expect a corresponding reduction in petrol pump prices.
While acknowledging that market forces will ultimately determine prices, the minister emphasized that regulators have a legal obligation under the PIA to prevent deregulation from being used for profiteering. He added that full deregulation has encouraged investments, including the commencement of operations at the Dangote Refinery and other refining projects, while eliminating recurring fuel shortages despite recent global disruptions.