By Stephen Simon
The Federal Government has directed regulators in the downstream petroleum sector to ensure that the pump price of Premium Motor Spirit (PMS), also known as petrol, reflects the recent decline in global crude oil prices, as part of efforts to guarantee that Nigerians benefit from changing market conditions.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said government remained committed to the deregulation of the downstream sector but insisted that market realities should be reflected in retail fuel prices whenever there is a significant movement in crude oil prices.
According to the minister, while the government will not fix petrol prices under the deregulated regime, relevant regulatory agencies are expected to ensure that operators comply with market principles and do not exploit consumers through arbitrary pricing.
He noted that the recent drop in international crude oil prices should ordinarily translate into lower landing costs for imported petroleum products, adding that competition among marketers should ultimately benefit consumers through more competitive pump prices.
Industry stakeholders have also urged marketers to adjust prices in line with prevailing market conditions, arguing that sustained transparency in the pricing regime will strengthen public confidence in the deregulated market and encourage healthy competition among operators.
The development comes amid growing public concern over the high cost of transportation and other goods linked to fuel prices, with many Nigerians expressing hope that any reduction at the pumps will ease the pressure on household incomes and business operations.
The Federal Government said it would continue to monitor developments in the petroleum sector to ensure that the gains of deregulation are passed on to consumers while maintaining a stable and competitive downstream oil market.
