The Federal Government has instructed petroleum marketers to immediately adjust the pump prices of Premium Motor Spirit (PMS), also known as petrol, and other petroleum products to reflect the recent decline in global crude oil prices.
The directive was issued on Monday in Abuja by the Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, during the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum.
The forum was held under the theme, "Beyond Compliance: Certainty and Investment Confidence in Nigeria's Petroleum Sector."
Lokpobiri explained that the easing of tensions between Iran and the United States had contributed to a drop in global oil prices, making it necessary for petroleum marketers to reduce the pump prices of PMS and other refined petroleum products accordingly.
He expressed concern that despite the decline in international oil prices, consumers were yet to see corresponding reductions at filling stations. While acknowledging that the deregulated market would eventually correct itself through market forces, he warned marketers against taking advantage of the situation to make excessive profits.
According to the minister, the industry regulator has a legal responsibility under the Petroleum Industry Act (PIA) 2021 to ensure that deregulation does not become an opportunity for unfair profiteering.
"For too long, the dominant question in our regulatory conversations has been: are operators complying? That question matters. It will always matter. But it is no longer sufficient.
"The more consequential question today is this: are our regulatory authorities doing their job? Is it clear, consistent and predictable enough to give investors the confidence they need to commit capital, not just for one cycle, but for the long term?
"Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward," Lokpobiri said.
The minister urged petroleum marketers to uphold the principles of fair pricing so that Nigerians can benefit from current market realities. He also called on regulators to move beyond enforcing compliance by creating a stable and predictable regulatory environment capable of attracting long-term investments.
Lokpobiri noted that Nigeria's downstream petroleum sector is now fully deregulated following the reforms introduced by President Bola Tinubu, adding that the policy had paved the way for the commencement of operations at the Dangote Refinery and encouraged the development of other refinery projects across the country.
According to him, the deregulation policy has also eliminated the era of persistent fuel scarcity.
"The sector is now fully deregulated, a bold reform that President Bola Tinubu had the courage to implement. That decision paved the way for the operationalisation of the Dangote Refinery and other refinery projects currently underway.
"It also ensured that artificial scarcity has become a thing of the past.
"You can attest to the fact that since 2023 there has been availability of products in the country even with the recent challenges posed by the US-Israeli/Iranian conflict," he stated.
The minister further emphasised that the responsibilities of regulators extend beyond allowing market forces to determine prices. He stressed the need to ensure consumers receive the exact quantity of fuel they pay for.
"When someone pays for 10 litres of PMS, they should receive exactly 10 litres, not less," he warned.
Lokpobiri observed that while regulatory compliance remains important, investors are increasingly attracted to countries that provide clear, consistent and predictable regulatory policies.
He described general counsel and legal advisers as strategic partners whose responsibilities go beyond interpreting laws to shaping investment decisions, strengthening regulatory frameworks and supporting national development.
He urged legal advisers to offer constructive recommendations whenever existing regulations or policy guidelines create uncertainty capable of discouraging investment in the petroleum industry.
The minister noted that Nigeria's petroleum sector is entering a new phase marked by increased domestic refining capacity, greater private sector participation and expanding opportunities across the midstream and downstream segments.
According to him, sustaining investment in the industry will depend on policy consistency, transparent regulation, efficient dispute resolution mechanisms and strong collaboration among government institutions, regulators, industry operators and legal practitioners.
Lokpobiri expressed confidence that the recommendations from the forum would further strengthen governance, improve regulatory certainty and boost investor confidence in Nigeria's petroleum sector.
ADEOLA KUNLE
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