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Deregulation or Exploitation? FG Warns Fuel Marketers on Excessive Petrol Pricing

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Deregulation or Exploitation? FG Warns Fuel Marketers on Excessive Petrol Pricing

Deregulation or Exploitation? FG Warns Fuel Marketers on Excessive Petrol Pricing

The Federal Government has issued a stern warning to petroleum marketers against using old, expensive fuel inventory as a justification for maintaining high petrol prices, insisting that the sharp decline in global crude oil prices must be reflected at the pump for Nigerian consumers.

The directive came during a high-level stakeholders’ meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja on Monday, bringing together major industry players including the Dangote Petroleum Refinery, regulatory agencies, and key associations such as PETROAN, IPMAN, MEMAN, DAPPMAN, and NARTO.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, expressed serious concern over the disconnect between falling international crude prices and domestic pump prices. He stated that while global crude fluctuated from about $61-$65 per barrel in January to over $118 in April** before falling back to around **$71, petrol prices have not adjusted downward at a similar pace. “Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined,” Lokpobiri declared. “As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner”. The minister noted that although petrol prices have dropped from approximately ₦1,596 per litre in May to around ₦1,296 currently, the reduction remains disproportionate to the decline in global market conditions.

Lokpobiri emphasized that while Nigeria operates a fully deregulated downstream sector, this does not grant marketers a license for exploitation. He cited the Petroleum Industry Act (PIA) as empowering the regulator to prevent market distortion and “unnecessary profiteering”. “We have never faulted anybody as far as price was concerned because we are operating a fully deregulated economy. But deregulation doesn’t mean excessive profiteering,” the minister stressed. “There is no justification why the price will not reflect the current situation”. The government expressed preference for dialogue over enforcement, seeking to build consensus with industry operators on a framework for reducing prices in line with prevailing market realities rather than imposing regulatory measures.

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The minister warned that sustaining artificially high fuel prices could worsen inflationary pressures and undermine recent economic progress. Energy costs affect virtually every sector of the economy—transportation, food production, and manufacturing—directly impacting the cost of living. While Nigeria has made significant progress in moderating inflation from 34% in 2024 to 15.9%, Lokpobiri cautioned that unjustified high energy costs risk reversing these gains and slowing the recovery that Nigerians are beginning to experience. Nigeria’s petrol supply structure has shifted dramatically, with domestic refineries now supplying 87.6% of total consumption. In May 2026, total PMS supply averaged 47.4 million litres daily, with domestic refineries contributing 41.5 million litres, while imports accounted for 12.4%. Despite this, some marketers continue to import fuel, and supply chain costs, exchange rates, and logistics remain key price determinants.

NMDPRA Chief Executive Rabiu Umar confirmed that the meeting was convened at the minister’s directive to address public concerns over pricing. He noted that similar collaboration in the gas sector had already led to a reduction in LPG prices, expressing hope that the same approach would yield results in the petrol market. Umar acknowledged that despite positive signals from falling global crude prices, “the domestic retail market has not yet adjusted harmoniously to these downward shifts”. He emphasized that deregulation is designed to promote efficiency and competition, not market distortion or unfair consumer pricing. The regulator called for a transparent ecosystem where “the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner”.

However, petroleum marketers have pushed back against allegations of profiteering, revealing that many operators are actually incurring significant financial losses. The Independent Petroleum Marketers Association of Nigeria (IPMAN) explained that recent price cuts by the Dangote Refinery have left many marketers stuck with expensive inventory purchased at higher rates. “We bought petrol at a particular rate a few days ago; on our way to our filling stations, there was a reduction. We have been struggling with the price. We have been struggling against financial losses,” said IPMAN’s National Publicity Secretary, Chinedu Ukadike. Marketers warned that any attempt to enforce price controls could trigger a nationwide shutdown of filling stations. They argue that the solution lies in increasing competition through functional refineries and boosting importation, not government price fixing. “The primary cause of this is that there is no competition. If there should be competition, the refineries will be working. That is where the minister should put his energy,” Ukadike stated.

The Dangote Refinery has already taken steps to reduce prices, slashing its gantry price by N75 per litre to N1,175 on June 16, and further reducing to N1,125 on June 25, following the de-escalation of Middle East tensions and falling crude prices. The refinery has now become one of the cheapest fuel sources in the country. Following these reductions, some filling stations in Abuja have begun adjusting pump prices, now selling between N1,205 and N1,240 per litre.

The minister directed the NMDPRA to strengthen market monitoring and enforce pricing transparency across the supply chain. He also reiterated the call for full operationalisation of the National Strategic Stock to enhance energy security, minimize supply disruptions, and help stabilize future fuel prices. As the closed-door meeting concluded, participants were expected to agree on concrete measures to ensure petrol prices align with market fundamentals while maintaining a sustainable business environment for operators.

Deregulation or Exploitation? FG Warns Fuel Marketers on Excessive Petrol Pricing

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Adeleke Rejects Ataoja Palace Appointment, Reaffirms Oyebode as Osun Iyaloja-General

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Adeleke Rejects Ataoja Palace Appointment, Reaffirms Oyebode as Osun Iyaloja-General
Osun State Governor, Senator Ademola Adeleke and Ataoja of Osogbo, His Royal Majesty, Oba Jimoh Olanipekun Oyetunji, Laroye II

Adeleke Rejects Ataoja Palace Appointment, Reaffirms Oyebode as Osun Iyaloja-General

OSOGBO — Osun State Governor, Senator Ademola Adeleke, has reaffirmed Mrs Oyebode Mary as the Iyaloja-General of the state, declaring that any purported appointment of another person to the position is invalid.

The governor’s position followed an announcement reportedly emanating from the palace of the Ataoja of Osogbo concerning the appointment of a new Iyaloja-General.

In a statement issued on Friday by his spokesperson, Mallam Olawale Rasheed, Adeleke maintained that the authority to appoint the Iyaloja-General of Osun State rests with the state government.

The governor specifically warned market associations, traders and women across the state against recognising or acting on any announcement of a new Iyaloja-General from any quarter other than the state government.

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According to him, “any announcement from any other quarter including the Osogbo Royal Palace is null and void.”

Adeleke further declared that Mrs Oyebode remains the legally recognised Iyaloja-General of Osun State and continues to enjoy the full backing and recognition of his administration.

The governor urged market leaders and womenfolk across the state to disregard any purported appointment of another person to the position, stressing that Mrs Oyebode remains the duly appointed Iyaloja-General under the authority of the state government.

He also appealed to traditional institutions, organisations and individuals to respect the law and remain within the boundaries of their respective mandates.

Adeleke cautioned against actions capable of creating tension or disturbing the peace of the state, urging all parties involved in the development to exercise restraint.

The governor’s statement could further deepen attention around the authority and processes governing the leadership of market associations in Osun State, particularly amid the conflicting positions attributed to the state government and the Osogbo traditional institution.

Adeleke Rejects Ataoja Palace Appointment, Reaffirms Oyebode as Osun Iyaloja-General

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Atiku Challenges Tinubu’s Prosperity Claim, Says Nigerians Can Barely Afford to Live

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Atiku Challenges Tinubu’s Prosperity Claim, Says Nigerians Can Barely Afford to Live
Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar

Atiku Challenges Tinubu’s Prosperity Claim, Says Nigerians Can Barely Afford to Live

Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has criticised President Bola Ahmed Tinubu’s claim that Nigeria has entered an era of prosperity, saying millions of Nigerians are still struggling to afford basic necessities.

Atiku made the remarks in his Independence Day address on Thursday as Nigeria marked its 66th anniversary, arguing that the economic gains highlighted by the government have yet to translate into improved living conditions for many households.

Tinubu, in his own Independence Day address, said Nigeria had moved from a period of difficult economic reforms into what he described as an era of shared and widespread prosperity. He said the government’s focus was now on lowering the cost of living, creating jobs, expanding production and improving opportunities for Nigerians.

Atiku, however, disputed that assessment, saying the reality confronting ordinary Nigerians was different from the picture presented by the government.

He argued that a reduction in the rate of inflation does not automatically restore the purchasing power lost by households after years of rising prices.

According to Atiku, the current N70,000 minimum wage can purchase about 50 litres of petrol, compared with about 118 litres that the former N30,000 minimum wage could buy in April 2023.

He also cited the rising prices of basic food items, including bread and eggs, as evidence of the pressure facing families.

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The ADC candidate said his approach to reducing petrol prices would include a capped and budgeted production subsidy restricted to petrol refined in Nigeria. Under his proposal, imported petrol would not qualify for the subsidy.

He said the arrangement would have a spending limit, with the cost made public and payments independently audited. He argued that such a policy could reduce pump prices while supporting domestic refining and creating jobs.

Atiku also questioned the Federal Government’s reported cash transfers to vulnerable Nigerians, asking how more than 10 million beneficiaries were identified and paid.

He said the government should provide details of the beneficiaries and explain how the funds were disbursed.

The former vice president also raised concerns over Nigeria’s public debt, citing a debt stock of about N166.79 trillion as of the end of June 2026. He criticised the extension of the 2025 budget into 2026 and questioned the management of public resources.

On insecurity, Atiku said Nigerians continued to face threats from armed groups, while farmers in some communities remained unable to access their farms safely.

He also called for greater adherence to the rule of law, raising questions about the continued detention of certain individuals, including Sheikh Sani Khalifa Zaria and former Kaduna State governor Nasir El-Rufai.

On the case of Nnamdi Kanu, Atiku said the legal process should respect his right to appeal and that the grievances surrounding the case should be addressed through lawful means.

He also criticised the reported arrest of Nigerians over the wearing of T-shirts bearing the slogan “Tinubu Must Go”, arguing that political expression should not by itself be treated as a criminal offence.

Atiku further challenged the administration over its handling of the economy, saying Nigerians had endured substantial hardship following the removal of the petrol subsidy and other economic reforms.

He maintained that the benefits promised from the reforms had not yet been sufficiently felt by ordinary citizens.

The ADC candidate urged Nigerians to remain engaged in the political process ahead of the 2027 general election, calling on voters to protect their votes and participate actively in determining the country’s leadership.

Atiku said the central issue was whether government policies were improving the daily lives of Nigerians, particularly in the areas of food prices, transportation, employment, healthcare, security and household income.

His address came shortly after Tinubu told Nigerians that the government had completed the most difficult phase of its economic reforms and was now focused on translating those reforms into broader prosperity.

The contrasting Independence Day messages highlighted the competing assessments of Nigeria’s economic situation ahead of the 2027 elections, with Tinubu defending the direction of his reforms and Atiku arguing that the hardship experienced by many households remains unresolved.

Atiku Challenges Tinubu’s Prosperity Claim, Says Nigerians Can Barely Afford to Live

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Nigeria at 66: Tinubu Unveils Fresh Push for Lower Costs, Jobs, Prosperity (Full Text)

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Nigeria at 66: Tinubu Unveils Fresh Push for Lower Costs, Jobs, Prosperity (Full Text)

Nigeria at 66: Tinubu Unveils Fresh Push for Lower Costs, Jobs, Prosperity (Full Text)

President Bola Ahmed Tinubu has declared that Nigeria is entering what he described as an “age of prosperity”, saying the focus of his administration will now shift from economic reforms to lower living costs, job creation, industrial growth and improved living standards.

Tinubu made the declaration in his 66th Independence Day address to Nigerians on Thursday, October 1, 2026, saying his administration had spent the past three years addressing what it regarded as longstanding economic distortions and was now moving towards what he called “shared and widespread prosperity.” (State House)

“The emergency treatment is over. The foundation has been repaired,” the President said, arguing that the country had reached a turning point after a difficult period of economic adjustment.

Tinubu said the next phase would concentrate on translating economic improvements into tangible benefits for Nigerians, particularly by reducing the cost of producing and transporting goods, expanding agricultural production and creating millions of productive opportunities.

According to the President, the government will pursue expanded mechanised irrigation and dry-season farming, improved access to seeds and fertiliser, greater agricultural mechanisation, storage facilities and better transportation infrastructure.

He said investments in roads, railways and ports would also help connect farms and factories to markets and reduce the cost of moving goods across the country.

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Tinubu said the administration’s approach was based on lowering production costs so that savings could eventually be reflected in the prices paid by consumers.

He also placed job creation and industrialisation at the centre of the next phase of his economic programme, saying Nigeria’s large youth population could become an engine of production if provided with the right opportunities, skills, infrastructure and access to finance.

The President said government would use the country’s natural gas resources to support new industries and help businesses revive factories, while expanding digital connectivity and skills development.

“I want to see more Nigerians making things,” Tinubu said, outlining a vision in which Nigerian farms supply cities and factories, local businesses expand their exports and young Nigerians build technology companies and other enterprises.

On social protection, Tinubu acknowledged that millions of Nigerians still face difficulties paying for food, education, healthcare and transportation.

He said government would strengthen support for vulnerable households through the National Social Register, while continuing programmes such as the Nigerian Education Loan Fund (NELFUND) and CREDICORP.

The President also said the Federal Government would continue working with state and local governments to strengthen primary healthcare, basic education and other essential public services.

Tinubu said these interventions were intended to support vulnerable Nigerians while the broader economy expands, rather than serve as a permanent substitute for economic opportunity.

He also defended the administration’s economic reforms, arguing that the measures did not create Nigeria’s longstanding economic weaknesses but were intended to address them.

The President said the Nigerian economy had grown by more than four per cent in 2026, while inflation had fallen from its peak, foreign reserves had been rebuilt and the foreign exchange market had stabilised. He also said oil theft had declined and that Nigeria generated more than $6 billion in non-oil export revenue in 2025, which he described as a record. These figures were presented as part of the administration’s assessment of its economic performance. (State House)

Tinubu acknowledged the hardship associated with the reforms but argued that the government could not reverse in four years problems that had accumulated over several decades.

“We cannot erase in four years what accumulated over generations,” he said, while promising to change the country’s economic direction and steadily reduce poverty.

The President said the administration’s ultimate objective was not merely to manage poverty but to create conditions that would allow more Nigerians to move out of poverty through sustained economic growth and productive employment.

“The age of reform has done its work. Now begins the age of prosperity,” Tinubu declared.

He urged Nigerians to look ahead and support efforts to build what he described as a country of greater abundance and opportunity.

Tinubu concluded his Independence Day speech by calling for national unity and renewed confidence in Nigeria’s future, saying the country had corrected its economic direction and should now move forward without looking back. (State House)

Full Tinubu Independence Day speech

The complete 66th Independence Day address by President Bola Ahmed Tinubu, titled “From Reform to Prosperity,” is available in full on the official State House website. (State House)

Read Tinubu’s full 66th Independence Day address

Nigeria at 66: Tinubu Unveils Fresh Push for Lower Costs, Jobs, Prosperity (Full Text)

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