Federal Government directs petrol sellers to adjust fuel costs in line with falling international crude oil rates

Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, has issued a directive to petroleum marketers to immediately reduce the pump prices of Premium Motor Spirit (PMS) and other petroleum products in line with the recent decline in global oil prices. This directive was given at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum, which took place on Monday in Abuja.

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The forum, themed “Beyond Compliance Certainty and Investment Confidence in Nigeria’s Petroleum Sector,” provided a platform for discussions on the petroleum sector. Lokpobiri noted that the decrease in global oil prices, resulting from eased tensions between Iran and the United States, should be reflected in lower pump prices for PMS and other petroleum products.

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Lokpobiri expressed concern that the anticipated reduction in prices had yet to be reflected at the pumps, emphasizing that while market forces would ultimately restore price equilibrium, marketers should not exploit the situation to make excessive profits. The minister stressed that the regulator had a statutory responsibility to prevent deregulation from becoming an avenue for profiteering, in accordance with the provisions of the Petroleum Industry Act (PIA 2021).

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Lokpobiri stated that the dominant question in regulatory conversations had been compliance, but now the more consequential question was whether regulatory authorities were doing their job. He asked if regulatory authorities were providing a clear, consistent, and predictable environment to give investors the confidence they needed to commit capital for the long term.

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He emphasized that compliance was the foundation, but regulatory certainty was the ceiling that must be built towards. Lokpobiri urged marketers to comply with the principles of fair pricing, ensuring that consumers benefit from prevailing market realities, and regulators to promote regulatory certainty to attract long-term investments.

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The minister noted that the sector was now fully deregulated, a reform implemented by President Bola Tinubu, which paved the way for the operationalisation of the Dangote Refinery and other refinery projects. This deregulation also ensured that artificial scarcity had become a thing of the past, with products available in the country since 2023 despite recent challenges.

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Lokpobiri warned that regulators must ensure consumers receive the correct quantity of product, emphasizing that when someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less. He stressed that beyond allowing prices to be determined by market forces, the question was what the regulator was doing to protect consumers.

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Lokpobiri said that while compliance with regulations remained fundamental, investors were increasingly interested in jurisdictions with clear, consistent, and predictable regulatory frameworks. He described general counsel as strategic partners whose responsibilities extend beyond interpreting laws to shaping investment decisions and supporting national development.

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According to him, legal advisers should provide constructive feedback whenever regulations or guidelines create uncertainty that could discourage investment. Lokpobiri noted that Nigeria’s petroleum sector was entering a new phase characterised by expanding domestic refining capacity, increased private sector participation, and emerging opportunities across the midstream and downstream segments.

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He expressed confidence that attracting investments would require policy consistency, transparent regulation, efficient dispute resolution, and strong collaboration among government, regulators, industry operators, and legal practitioners. Lokpobiri was confident that the recommendations from the forum would contribute to improving governance, regulatory certainty, and investment confidence in Nigeria’s petroleum sector.