The Federal Government convened a meeting on Monday with key stakeholders in the downstream oil and gas industry, including Dangote Refinery, regulatory bodies, and major oil marketers, to negotiate a reduction in the pump price of petrol nationwide and ensure fairer pricing for Nigerian consumers.
The meeting, held at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) headquarters in Abuja, featured a lineup of industry heavyweights, including top officials from Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN). Also in attendance were representatives from industry giants such as TotalEnergies, Eterna, Matrix Energy, MEMAN, DAPPMAN, IPMAN, NARTO, and other key sector players.
The meeting followed a directive from the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged oil marketers to urgently adjust their pump prices downward to reflect the recent decline in global crude oil price benchmarks.
Speaking at the session, Lokpobiri warned that deregulation must not be exploited for excessive profiteering.
He emphasised that the falling price of crude oil should directly translate into lower costs for petrol and Automotive Gas Oil (AGO) in the local market, given their ripple effects on the broader economy.
The minister urged all parties to reach a consensus on actionable strategies to reduce prices without compromising the viability of legitimate businesses or the welfare of consumers.
Echoing this sentiment, NMDPRA Chief Executive Rabiu Abdullahi Umar noted that the meeting was designed to fast-track cost-reflective pricing.
With international oil market tensions showing signs of abating, he called for unified approaches to smarter inventory management, rigorous market oversight, and strategic management of national fuel reserves to ensure lasting relief at the pumps.
There has been widespread clamour for a significant reduction in pump prices of fuel across Nigeria following the drop in Crude oil prices at the global market.
Crude prices had risen to a peak of almost $120 per barrel during the Middle East hostilities involving the United States, Israel and Iran. This forced fuel pump prices to rise to between ₦1,300 and ₦ 1,500 per litre across the country.
However, oil prices have been on a downward trend in recent weeks, falling to around $70 per barrel, following the ceasefire agreement between the United States and Iran to end the four-month-old war.
Brent Crude, the international benchmark, fell to $71.84 per barrel, while the U.S. West Texas Intermediate (WTI) sold for $68.40 per barrel on Monday, July 6, 2026, according to Oilprice.com.
Despite the falling crude oil prices, the cost of fuel has remained high, selling above N1,000 per litre. The Federal Government insists that the about ₦300 reduction is not commensurate with the sharp decline in global replacement costs.
In a recent statement, FCCPC argued that before the Iran war, petrol was sold between ₦800 and ₦900 per litre when crude oil was at the level as today.
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The minister cautioned operators against using older, more expensive stockpiles to justify artificially sustaining elevated pump prices, demanding that as cheaper stocks are replenished, the savings must be passed directly to Nigerian consumers.
Dangote Refinery’s Pricing Slashes
On its part, the Dangote Refinery has executed four successive price cuts within a single month (a cumulative drop of ₦200 per litre since May 30), bringing its gantry ex-depot price down to ₦1,075 per litre as of July 2.
In a statement last week, the refinery management noted that it has been absorbing significant inventory shocks, having processed crude bought at a landed cost of $124.80/bbl in May and $95.25/bbl in June, but expects further domestic price moderation as lower-cost feedstock enters the refining cycle.
Marketer Pushback
Downstream marketing associations have countered the allegations of deliberate profiteering. The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently emphasized that the market is fully deregulated under the Petroleum Industry Act (PIA) 2021 and warned that any heavy-handed attempt by the government to impose price ceilings, rather than letting competitive market forces handle distribution dynamics, could lead to operational disruptions and potential filling station closures.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X