Nigeria’s downstream petroleum regulator has been directed to step up oversight of the deregulated fuel market to prevent excessive pricing and protect consumers from unfair practices.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the directive during the opening of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja.
Speaking on the theme, “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector,” the minister stressed that while petrol prices are now determined by market forces under the deregulated regime, the regulator must ensure that deregulation does not become a tool for profiteering.
Lokpobiri noted that the recent easing of geopolitical tensions in the Middle East and the subsequent decline in global crude oil prices had raised public expectations for a reduction in the retail price of Premium Motor Spirit (PMS), commonly known as petrol.
He observed that despite the significant drop in international crude oil prices, many marketers have continued to sell petrol at relatively high prices, leaving consumers questioning why pump prices have not adjusted accordingly.
According to the minister, although market forces are expected to determine prices over time, the Petroleum Industry Act (PIA) also empowers the regulator to ensure transparency, fairness and accountability in the downstream sector.
He charged the NMDPRA to closely monitor pricing practices and ensure that operators comply with the provisions of the law while maintaining a competitive and efficient market.
Lokpobiri also emphasized that consumer protection goes beyond monitoring pump prices. He directed the authority to intensify surveillance at filling stations to ensure Nigerians receive the exact quantity of fuel they pay for.
He said customers who purchase 10 litres of petrol should receive precisely that amount, stressing that accurate dispensing remains one of the regulator’s core responsibilities.
The minister further stated that Nigeria’s fuel supply remained stable during the recent period of global uncertainty, attributing the resilience of the downstream sector to the deregulation policy and increasing domestic refining capacity.
He noted that the Petroleum Industry Act has already provided the legal framework needed to transform the country’s oil and gas industry, adding that the next phase of reform depends on consistent implementation, regulatory certainty and predictable policies capable of attracting long-term investment.
Lokpobiri urged legal advisers and regulatory officials within the petroleum sector to see themselves as facilitators of investment rather than creating unnecessary bureaucratic obstacles that discourage businesses.
According to him, the success of the industry will ultimately be measured not by the number of regulations issued but by the volume of investments attracted, businesses established, jobs created and long-term value generated for the Nigerian economy.
In his remarks, the Chief Executive of the NMDPRA, Mallam Rabiu Umar, said the industry has evolved beyond basic regulatory compliance, with greater emphasis now placed on transparency, certainty and investor confidence.
He explained that while compliance remains essential, the effective implementation of the Petroleum Industry Act is critical to creating a stable business environment that gives investors confidence to commit long-term capital to Nigeria’s petroleum sector.
Also speaking, the authority’s Secretary and Legal Adviser, Dr. Joseph Tolorunse, said regulatory certainty has become a key factor in sustaining investments by ensuring stable fiscal policies and minimizing policy reversals that could undermine investor confidence.
He added that the Petroleum Industry Act has strengthened Nigeria’s competitiveness in the global oil and gas industry and is expected to drive increased investment, economic growth and expansion across the energy value chain.
Meanwhile, petroleum product prices at major depots across the country recorded marginal adjustments, reflecting continued competition among suppliers and gradual market corrections.
Several depots in Lagos, Port Harcourt, Calabar and Warri reduced the ex-depot price of Premium Motor Spirit by small margins, while diesel prices recorded mixed movements depending on location and supply conditions.
The modest reductions indicate that competition within the deregulated market and improved domestic refining capacity are beginning to moderate wholesale petrol prices, although retail pump prices are yet to reflect significant changes in many parts of the country.
Industry stakeholders believe further reductions in petrol prices may occur if international crude oil prices remain stable, the exchange rate continues to improve and supply conditions remain favourable.
They, however, noted that marketers often adjust pump prices gradually because products already in storage were purchased at higher costs, meaning operators typically seek to recover part of their inventory expenses before implementing fresh price reductions.
Energy analysts also observed that while local refining has improved product availability and reduced dependence on imports, crude oil supplied to domestic refineries is still priced in line with international market benchmarks, meaning exchange rate movements and global oil prices continue to influence production costs.
They expressed optimism that sustained stability in the foreign exchange market, lower international crude prices and stronger competition among refiners and marketers would eventually translate into lower fuel prices for consumers in the coming weeks.
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