Consumers Fault Marketers Over Delay In Petrol Price Cut

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…FG Meets Marketers, Regulators Amid Price Concerns
…Asks Oil Marketers To Crash Petrol Prices Now

LAGOS /ABUJA – Nigerian consumers have expressed growing frustration over what they de­scribed as the reluctance of petroleum marketers to reduce the pump price of premium motor spirit (PMS), popularly known as petrol, despite improving mar­ket fundamentals that they say should ordinarily translate into cheaper fuel.

This is coming as the Federal Com­petition and Consumer Protection Com­mission (FCCPC) has promised to wield the big stick against oil marketers.

Across major cities, motorists, trans­port operators and consumer advocacy groups argued that the current pump price of petrol no longer reflects prevail­ing realities in the international crude oil market, the relative stability of the naira and increased competition among domestic fuel suppliers.

They insisted that retail prices should have fallen below N1,000 per litre, accus­ing marketers of prioritising profit over consumer welfare at a time when mil­lions of Nigerians continue to grapple with rising living costs.

The calls come amid grad­ual moderation in global crude oil prices compared to previous highs and improved foreign ex­change stability following recent monetary reforms by the Central Bank of Nigeria (CBN).

Consumer groups argue that these developments have signifi­cantly lowered the landing cost of imported petrol while also reducing production costs for locally refined products, making the current pump prices difficult to justify.

Many motorists, who spoke with our correspondent, said marketers were quick to increase prices whenever crude oil prices rose or the naira depreciated but had become slow in passing on the benefits of improved market conditions to consumers.

“They are always very fast to raise prices whenever costs increase, but when costs come down, they suddenly begin to talk about old inventory and market uncertainties. Nigerians deserve to enjoy the benefits of lower costs just as they suffered when prices were going up,” said Toju Akilo, a Lagos commercial driver.

Consumer rights advocates argued that market competition should ordinarily force retail prices lower, especially with multiple fuel suppliers now par­ticipating in the downstream petroleum market following the deregulation of the sector.

According to them, the entry of domestic refining capacity and increased import competition should be creating downward pressure on prices rather than maintaining them at elevated levels.

The President of the National Consumer Protection Network, Mr. Kunle Olubiyo, said consum­ers were becoming increasingly impatient over what they per­ceived as artificial price rigidity.

He noted that while deregu­lation allows prices to respond to market forces, such flexibility must work in both directions.

“If marketers can adjust pric­es upward almost immediately whenever international prices rise, consumers also expect sim­ilar speed when market condi­tions improve,” he said.

According to him, maintain­ing high prices despite improv­ing fundamentals undermines public confidence in the deregu­lated market and raises questions about the level of competition within the downstream petro­leum industry.

Transport operators also lamented that the continued high cost of petrol was keeping transport fares elevated, thereby worsening inflation across the economy.

A top leader of a transport union said fuel remains the sin­gle largest operating expense for commercial vehicle operators.

He explained that meaningful reductions in petrol prices would immediately lower transporta­tion costs and provide relief to millions of Nigerians struggling with high food prices and other essential expenses.

“The cost of moving goods and people is directly linked to petrol prices. Once fuel becomes cheaper, transport fares will grad­ually adjust, and that will also help moderate inflation,” he said.

Economic analysts share sim­ilar views, noting that fuel prices have a multiplier effect on virtu­ally every sector of the Nigerian economy.

From food distribution and manufacturing to logistics and small businesses, energy costs remain a major driver of pro­duction expenses.

Lower petrol prices, they argue, would reduce operating costs for businesses, improve household purchasing power and support economic growth.

Some analysts, however, cau­tioned that marketers may still be accounting for existing inven­tories purchased at higher costs before implementing fresh price reductions.

According to them, while this explanation may justify tempo­rary delays, prolonged reluctance to reduce prices could weaken confidence in the deregulated pricing system.

“There has to be transparen­cy in pricing,” one energy econ­omist said.

“Consumers understand that marketers need to recover legiti­mate costs, but they also expect prices to reflect current realities within a reasonable period.”

Consumer organisations therefore called on regulatory authorities to intensify mar­ket surveillance to ensure that competition remains effective and that consumers are not subjected to exploitative pricing practices.

Although the sector has been deregulated, they stressed that regulators still have the responsi­bility of promoting transparency and preventing anti-competitive behaviour.

They also urged marketers to publish clearer pricing templates showing how retail prices are determined, arguing that great­er transparency would improve public understanding and reduce suspicion.

Many Nigerians believe petrol should now retail below N1,000 per litre, especially in major cit­ies where distribution costs are relatively lower.

According to them, such a reduction would send a positive signal to consumers that the benefits of improved macroeco­nomic conditions are beginning to filter through to households.

For millions of Nigerians bat­tling rising food prices, transport costs and declining purchasing power, any reduction in fuel pric­es would provide welcome relief.

With inflation still weighing heavily on household budgets, consumers insist that market­ers must respond more quickly to favourable market conditions rather than allowing Nigerians to bear the burden of persistently high pump prices.

As competition in the down­stream petroleum industry continues to deepen, many stakeholders believe sustained reductions in petrol prices will ultimately become inevitable.

Until then, consumers say they will continue to demand fair pricing that reflects prevailing economic realities, insisting that the era of keeping pump prices artificially high despite falling costs should come to an end.

FG Meets Marketers, Regulators Amid Fuel Price Concerns

Meanwhile, concerned about price fluctuations on fuel, the Federal Government has entered into talks with petroleum market­ers and industry regulators.

Minister of Finance and Coor­dinating Minister of the Econo­my, Taiwo Oyedele, said the move is aimed at ensuring that fuel market operators charge reason­ably and that price adjustments reflect global crude movements more transparently.

Oyedele lamented that mar­keters tend to increase pump prices of fuel arbitrarily when crude prices climb because of replacement costs, but reduce prices more slowly when crude falls due to existing inventory.

He revealed, “We are work­ing to strike a balance between ensuring operators remain com­mercially viable and protecting Nigerians from unfair pricing,” he said.

He hinted that the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regula­tory Authority (NMDPRA) are al­ready addressing the issue under the Petroleum Industry Act.

Commenting on efforts to ease transport costs, Oyedele explained that it was part of reasons why the government introduced tax removals and subsidies.

He said President Tinubu had suspended Value Added Tax (VAT), excise duty and the surcharge on petroleum prod­ucts, noting that fuel prices in neighbouring countries are 20 to 50 percent higher because those taxes remain in place.

He enjoined transport oper­ators benefiting from the CNG programme, including subsi­dised vehicle conversion kits, to pass savings to commuters rath­er than charging the same fares as petrol‑powered vehicles.

“Government had made sig­nificant investments in the CNG programme and I call on all stakeholders to play their part in ensuring Nigerians benefit from the intervention,” he said.

FG To Marketers: Crash Petrol Prices As Global Crude Drops

Minister of State for Petro­leum Resources, Sen. Heineken Lokpobiri, has directed petro­leum marketers to immediately reflect the recent decline in global oil prices by reducing the pump prices of premium motor spirit (PMS) and other petroleum prod­ucts.

Lokpobiri gave the directive at the 2026 Nigerian Midstream and Downstream Petroleum Regula­tory Authority (NMDPRA) Gen­eral Counsel and Legal Advisers Forum on Monday in Abuja.

The forum is themed ‘Beyond Compliance Certainty and In­vestment Confidence in Nigeria’s Petroleum Sector.’

Lokpobiri said that with the de-escalation of tensions between Iran and the United States, there was an expectation that the pric­es of PMS and other petroleum products would be adjusted downward accordingly.

He expressed concern that the anticipated reduction had yet to be reflected at the pumps, stressing that while market forc­es under the deregulated regime would ultimately restore price equilibrium, marketers should not exploit the situation to make excessive profits.

The minister said the regula­tor had a statutory responsibility to ensure that deregulation did not become an avenue for profi­teering, adding that this must be carried out 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,” he said.

Lokpobiri, while urging mar­keters to comply with the prin­ciples of fair pricing to ensure that consumers benefit from the prevailing market realities, urged regulators to move beyond com­pliance by promoting regulatory certainty to attracting long-term investments.

“The sector is now fully dereg­ulated, a bold reform that Presi­dent Bola Tinubu had the cour­age to implement. That decision paved way for the operationalisa­tion of the Dangote Refinery and other refinery projects currently underway.

“It also ensured that artificial scarcity has become a thing of the past.

“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.

“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 said 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, improving regulatory design and support­ing national development.

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

He said 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.

According to him, attracting investments will require policy consistency, transparent regula­tion, efficient dispute resolution and strong collaboration among government, regulators, industry operators and legal practitioners.

He expressed confidence that the recommendations from the forum would contribute to im­proving governance, regulatory certainty and investment con­fidence in Nigeria’s petroleum sector.