FG Directs Petroleum Marketers to Cut PMS Prices as Global Oil Prices Fall

The Federal Government has directed petroleum marketers to cut PMS prices immediately, citing the recent decline in global crude oil prices. Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, issued this directive on Monday in Abuja. He spoke at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum. Moreover, his tone was firm — Nigerians at the pump deserve to feel the benefit of falling global prices without delay.

The forum carried the theme “Beyond Compliance: Certainty and Investment Confidence in Nigeria’s Petroleum Sector.” Additionally, it brought together legal advisers, regulators, and industry operators to discuss the future of Nigeria’s downstream sector.

Why the FG Directed Petroleum Marketers to Cut PMS Prices Now

The global context behind this directive is straightforward. Lokpobiri said that with the de-escalation of tensions between Iran and the United States, there was an expectation that the prices of PMS and other petroleum products would be adjusted downward accordingly. That diplomatic thaw significantly calmed global oil markets. Consequently, crude prices dropped — and the government expects Nigerians to benefit directly.

However, the minister made clear that the drop at the international level had not yet reached Nigerian filling stations. He expressed concern about this gap. Furthermore, he stressed that while market forces under the deregulated regime would ultimately restore price balance, marketers must not use the transition period as an opportunity to pocket extra margins.

The minister said the regulator had a statutory responsibility to ensure that deregulation did not become an avenue for profiteering, adding that this must be carried out in line with the provisions of the Petroleum Industry Act (PIA 2021). In other words, deregulation does not mean a free pass for exploitation.

Lokpobiri also raised another consumer protection issue beyond pricing. He warned that when someone pays for 10 litres of PMS, they should receive exactly 10 litres — not less. Therefore, quantity accuracy at the pump is just as important as price fairness.

Lokpobiri Pushes Regulators: Move Beyond Compliance to Certainty

Beyond the pricing directive, Lokpobiri used the forum to deliver a broader message to Nigeria’s petroleum regulators. He challenged them to stop asking only whether operators comply with rules. Instead, he urged them to pursue a higher standard — regulatory certainty.

“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,” he said. He then added: “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?”

This is a notable shift in emphasis. Regulatory certainty — the idea that rules stay stable, transparent, and enforceable — has become a key consideration for international energy investors. Without it, capital flows elsewhere. Nigeria, therefore, needs its downstream regulators to think like investment promoters, not just rule enforcers.

Lokpobiri said Nigeria’s petroleum sector was entering a new phase characterised by expanding domestic refining capacity, increased private sector participation and emerging opportunities across the midstream and downstream segments. Consequently, the role of regulators and their legal advisers is more critical than ever.

Furthermore, he described general counsel as strategic partners. Their responsibilities, he argued, extend well beyond interpreting laws. They also shape investment decisions, improve regulatory design, and support national development goals. He therefore urged legal advisers to provide constructive feedback whenever regulations create uncertainty that could discourage investment.

Deregulation, Dangote Refinery, and the Road Ahead for PMS Prices

Lokpobiri also took time to defend the Tinubu administration’s subsidy removal policy — and explain what it has unlocked. He said 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.

He also pointed to one underappreciated benefit of deregulation. Since 2023, there has been availability of products in the country, even with the recent challenges posed by the US-Israeli/Iranian conflict. Fuel scarcity — once a chronic national headache — has largely faded since the subsidy regime ended.

Nevertheless, the minister was clear that availability alone is not enough. Affordability must follow. That is precisely why the directive to cut PMS prices carries such urgency today. According to the U.S. Energy Information Administration, global crude oil prices have declined notably in recent weeks amid easing geopolitical tensions. Nigeria’s deregulated market structure means those global movements should, in theory, feed directly into local pump prices. The gap that currently exists is exactly what Lokpobiri wants closed — and fast.

He expressed confidence that the recommendations from the forum would contribute to improving governance, regulatory certainty and investment confidence in Nigeria’s petroleum sector.

What Nigerian Consumers Should Watch For

For ordinary Nigerians, the key takeaway from Monday’s forum is simple: pump prices should come down. The government has publicly directed marketers to act. Therefore, if prices remain unchanged at filling stations in the coming days, the NMDPRA faces pressure to enforce the directive.

The PIA 2021 gives regulators the legal tools to act against profiteering. Whether they use those tools swiftly will test the government’s commitment to ensuring that deregulation truly works in the interest of consumers — not just industry players.

All eyes now turn to the nation’s fuel stations. The government has spoken clearly. The next move belongs to the marketers.