By Eshioromeh Sebastian
Independent petroleum marketers on Monday demanded direct import licences from the Federal Government, promising that pump prices could drop below N800 per litre if granted, even as officials questioned why falling global crude costs had not translated to lower petrol prices nationwide.
The demand came during a high-level meeting at the NMDPRA headquarters in Abuja, where downstream operators, regulators, and government officials gathered to address the widening gap between international crude prices and domestic fuel costs.
IPMAN National President Abubakar Maigandi told reporters after the session that allowing independent marketers to import products directly would intensify competition and force prices down.
“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves,” Maigandi said.
“What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too.”
He said marketers had already begun reducing prices voluntarily.
“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.
Maigandi projected further reductions, saying, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery.”
He also welcomed the Dangote refinery’s decision to sell directly to independent marketers.
“I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price,” Maigandi said.
But Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government was troubled by the slow pace of price adjustments.
“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high. In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry,” Lokpobiri said.
He cautioned marketers against using past high-cost inventories to justify current high prices.
“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management. Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he said.
Lokpobiri said the government had asked marketers to return with concrete proposals.
“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market. We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he said.
On when Nigerians should expect lower prices, he said, “As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing.”
NMDPRA Authority Chief Executive Rabiu Umar, in his opening address, warned that deregulation must not become a tool for exploitation.
“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value, and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive. We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” Umar said.
He cited a recent engagement in the gas sector as evidence that dialogue could yield results.
“Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit. Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks. It is exactly this kind of tangible success that inspired today’s gathering. When regulators and industry operators sit at the same table, we do not just debate challenges; we engineer solutions,” he said.
According to Lokpobiri, petrol prices peaked at N1,596 per litre in May and currently sell at around N1,296 per litre.
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