FG Insists on Immediate Pump Price Cuts as It Meets Dangote Refinery, Fuel Marketers

The Federal Government has urged key players in Nigeria’s downstream petroleum sector to ensure that recent reductions in the ex-depot price of petrol are reflected at filling stations across the country, as consumers continue to grapple with high fuel costs.

The position was made known during a meeting involving officials of the Federal Government, representatives of the Dangote Petroleum Refinery and petroleum marketers, where discussions centred on ensuring that Nigerians benefit from the recent decline in the refinery’s petrol prices.

Government officials reportedly stressed that marketers should adjust retail pump prices in line with falling supply costs, noting that the gains from lower ex-depot prices must not be lost to excessive profit margins or distribution bottlenecks.

The meeting followed a series of petrol price reductions by Dangote Petroleum Refinery. The refinery recently cut its ex-depot price of Premium Motor Spirit (PMS) from ₦1,125 per litre to ₦1,075 per litre, bringing its cumulative reduction since the end of May to ₦200 per litre. The company attributed the reductions to easing global crude oil prices and its commitment to making fuel more affordable.

Despite these reductions, many independent filling stations have been slow to lower their retail prices, a development that has drawn concern from both consumers and government officials. Industry observers say marketers often cite transportation costs, existing stock purchased at higher prices and other operational expenses as reasons for delaying price adjustments.

The Federal Government maintained that, in a deregulated market, competition should ultimately deliver lower prices to consumers whenever supply costs decline. It therefore called on marketers to ensure that the benefits of the refinery’s price cuts are passed on to motorists and businesses.

The engagement forms part of ongoing efforts by the government to encourage price stability in the downstream petroleum sector while promoting fair competition among refiners, depot operators and fuel marketers.