The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced consultations with industry stakeholders on the implementation of a cost-reflective pricing framework for Premium Motor Spirit (PMS), also known as petrol.
The move is aimed at promoting stability, transparency and long-term sustainability in Nigeria’s downstream petroleum sector.
The high-level stakeholder engagement brought together marketers, operators and other industry participants to deliberate on a pricing regime that reflects prevailing market conditions while balancing the interests of consumers, investors and petroleum operators.
According to the authority, the initiative follows a similar consultative approach recently adopted to address price distortions in Nigeria’s domestic liquefied petroleum gas (LPG) market.
Speaking on this, the regulator’s chief executive, Mr Rabiu Umar, said the engagement was designed to encourage transparent and solution-driven dialogue on emerging challenges in the downstream sector.
“The engagement was designed to foster transparent, inclusive, and solution-oriented dialogue with stakeholders to address emerging industry challenges, strengthen market surveillance, and enhance Nigeria’s energy security through a more efficient and resilient downstream market,” Mr Umar said.
The meeting was led by the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, who received recommendations from stakeholders and reaffirmed the federal government’s commitment to building a competitive downstream petroleum industry.
Mr Lokpobiri said the government would continue to work closely with industry players to implement policies that promote investor confidence while safeguarding consumers.
“The federal government will continue to collaborate with all stakeholders to implement policies that inspire investor confidence, protect consumers, ensure fair market practices, and support Nigeria’s long-term economic growth and energy security,” the minister said.
He added that the stakeholder engagement would continue until an acceptable pricing framework is achieved.
He also assured everyone that this strategic engagement would be an ongoing drive until a satisfactory outcome is achieved in the near term.
The NMDPRA said the consultations form part of ongoing efforts to deepen market efficiency, strengthen energy security and establish a transparent pricing framework capable of supporting sustainable investment across Nigeria’s downstream petroleum industry.