FG directs marketers to cut PMS prices in line with falling global oil prices

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has directed petroleum marketers to immediately reduce the pump prices of Premium Motor Spirit and other petroleum products to reflect the recent decline in global oil prices.

According to the News Agency of Nigeria, Lokpobiri issued the directive on Monday in Abuja at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority General Counsel and Legal Advisers Forum, themed “Beyond Compliance: Certainty and Investment Confidence in Nigeria’s Petroleum Sector.”

He said that with the de-escalation of tensions between Iran and the United States, petroleum product prices were expected to adjust downward accordingly, but expressed concern that this expected reduction had yet to be reflected at the pumps.

What Lokpobiri is saying

Lokpobiri said that while market forces under Nigeria’s deregulated downstream regime would ultimately restore price equilibrium, marketers should not exploit current conditions to make excessive profits at the expense of consumers.

He said regulators have a statutory responsibility to ensure that deregulation does not become an avenue for profiteering, stressing that this must be carried out strictly in line with the provisions of the Petroleum Industry Act 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?” he queried.
• “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,” he added.

He warned that beyond pricing, regulators must also ensure consumers receive correct product quantities.

• “When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less,” he said.

More insights

Lokpobiri credited Nigeria’s full deregulation of the downstream petroleum sector, a reform he said President Bola Tinubu had the courage to implement, with paving the way for the operationalisation of the Dangote Refinery and other ongoing refinery projects.

• He said deregulation has ensured that artificial scarcity has become a thing of the past, noting that products have remained available across the country since 2023, even amid recent supply challenges posed by the US-Israel-Iran conflict.
• He said investors are increasingly drawn to jurisdictions with clear, consistent and predictable regulatory frameworks, and described general counsel and legal advisers as strategic partners whose responsibilities extend beyond interpreting laws to shaping investment decisions and improving regulatory design.

According to him, legal advisers should provide constructive feedback whenever regulations or guidelines create uncertainty that could discourage investment in the sector.

He said attracting further investment into the sector will require policy consistency, transparent regulation, efficient dispute resolution and stronger collaboration among government, regulators, industry operators and legal practitioners.

What you should know

Nairametrics earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the slow pace at which petrol prices are being reduced by refiners, marketers, depot operators, and retailers despite a significant decline in global crude oil prices.

In a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission warned that businesses found taking advantage of consumers through unfair pricing practices could face regulatory action.

The FCCPC said its ongoing monitoring of the downstream petroleum sector revealed that recent cuts in gantry and retail prices have not matched the scale of the drop in international crude oil prices.