By Obas Esiedesa, Abuja

The Federal Government on Monday mounted fresh pressure on petroleum marketers to reduce the pump price of Premium Motor Spirit also known as petrol, insisting that the sharp decline in international crude oil prices should be reflected in retail fuel prices across the country.

Speaking at the Stakeholders’ Meeting on Cost-Reflective Pricing of PMS in Abuja, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the era of full deregulation does not permit excessive profiteering at the expense of Nigerians.

The meeting was attended by the representatives of the Dangote Refinery, Major Energy Marketers Association of Nigeria (MEMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

According to the Minister, while the government had no objection when petrol prices rose in response to higher crude oil prices, there is now no justification for maintaining high pump prices when global oil prices have fallen significantly.

“NMDPRA never faulted anybody as far as the price was concerned because we are operating a fully deregulated economy.

“But deregulation doesn’t mean excessive profiteering. PIA also invests in its responsibility on NMDPRA to ensure that we check steps that could be taken by some marketers to avoid unnecessary profiteering.

“Brent crude went as high as $118 per barrel, but it is now below $70 per barrel. There is no justification why the price will not reflect that”, Lokpobiri said.

He explained that the meeting was convened to build consensus with industry operators on a framework for reducing PMS prices in line with prevailing market realities rather than resorting to regulatory enforcement.

“The essence of today’s meeting is for us to create a platform to engage constructively as leaders of the industry with a view to finding common ground on how we can lower, if possible, the price of PMS.

“Deregulation does not mean excessive profiteering. The Petroleum Industry Act also places responsibility on the regulator to ensure that steps are taken to prevent unnecessary profiteering”, he added.

The Minister stressed that the government remains committed to implementing the deregulation policy while balancing the interests of investors with the need to protect consumers through affordable and readily available petroleum products.

He noted that energy prices have far-reaching implications for the economy, affecting transportation, manufacturing and the overall cost of living.

“The government is committed to protecting the interests of stakeholders, but it is equally committed to protecting the interests of the common man because everybody is affected one way or another”, he said.

Also speaking, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Mallam Rabiu Umar, said the current disconnect between falling international crude prices and sustained domestic retail PMS prices necessitated the engagement with marketers.

He said recent improvements in the domestic Liquefied Petroleum Gas, LPG, market following similar stakeholder consultations demonstrated that dialogue between regulators and operators could produce tangible outcomes.

“Recently, we have witnessed a welcome easing of geopolitical tensions, which has driven a downward shift in global crude prices. However, our domestic retail market has not yet harmoniously adjusted to these downward shifts.

“As a responsible regulatory authority, it is our duty to work with industry players to interrogate the market forces, understand operational bottlenecks and address this disconnect between falling replacement costs and sustained retail prices,” Umar said.

He maintained that the deregulated market introduced by the Federal Government was designed to encourage competition and investment, not market distortion.

“Deregulation is not a licence for market distortion or unfair consumer pricing. Sustainable profitability for marketers and consumer welfare are not mutually exclusive.

“We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” he said.

The NMDPRA boss added that discussions would also focus on market surveillance, inventory management and the acceleration of the National Strategic Stock initiative as part of efforts to strengthen the country’s energy security.

He urged marketers and other downstream operators to work with the regulator in finding a balanced solution that would guarantee business sustainability while ensuring that Nigerians benefit from lower fuel prices as market fundamentals improve.

As of the time of filing this report, the closed-door meeting between the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and key downstream petroleum stakeholders was still ongoing, with participants expected to agree on measures to ensure the reductions in domestic petrol pump prices while sustaining a fully deregulated market.