Nigeria Intensifies Pressure on Fuel Marketers as Prices Could Drop Below N800 Per Litre

The Federal Government has urged marketers to reduce petrol prices in line with falling global crude costs, with independent marketers signaling pump prices could fall below N800 per litre if wholesale supply costs continue to decline

Nigeria’s government has intensified pressure on fuel marketers to reduce petrol prices, arguing that current pump prices no longer reflect falling global crude oil costs, while independent marketers say prices could eventually fall below N800 ($0.58) per litre if wholesale supply costs continue to decline.

The fresh developments emerged after a closed-door meeting between the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, the Dangote Petroleum Refinery, and key downstream industry groups in Abuja. The meeting comes as Nigerians continue to question why retail fuel prices have remained relatively high despite a sharp decline in international crude oil prices over recent months.

The average retail price of Premium Motor Spirit rose to N1,596.25 per litre in May 2026, a 55.31 percent increase compared to N1,027.76 recorded in the same month a year earlier. Prior to the Middle East conflict that escalated on February 28, petrol prices stood at between N770 and N900 per litre.

Speaking to journalists after the meeting, Lokpobiri said the government believes current petrol prices are no longer aligned with prevailing market realities. My own opinion is that the current prices are not cost reflective,” the minister said, adding that the price consumers pay “is not reflective of the cost of crude oil.” He noted that Brent crude had climbed to around $118 a barrel earlier in the year, prompting rapid increases in domestic petrol prices. Now that benchmark prices have fallen to about $71 per barrel, he questioned why retail prices had not declined at a similar pace.

According to the minister, marketers argued during the meeting that some existing inventories were acquired when international prices were significantly higher. However, the government maintained that as new cargoes are purchased at lower replacement costs, those savings should be reflected more quickly in wholesale and retail prices.

The meeting also produced a potentially significant signal from independent fuel marketers. Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria, said members were prepared to reduce pump prices further provided acquisition costs continue to fall and marketers are able to maintain sustainable margins. At any time, when there is a reduction of price, we are ready to reduce the price to even below N800, not even N900,” Shettima said, noting that future pricing would depend largely on wholesale purchase costs from private depots and the Dangote Refinery.

Shettima also welcomed Dangote Refinery’s decision to begin supplying products directly to independent marketers, describing the arrangement as a positive development that could improve competition within the downstream market and lower distribution costs. The refinery has reduced its gantry loading price by N50 per litre to N1,125 per litre, following a previous N75 per litre reduction. The total reduction by Dangote Refinery in the two weeks since global prices eased now stands at N125 per litre.

NMDPRA Chief Executive Rabiu Umar said the stakeholder meeting was convened in response to growing public concern over petrol pricing despite weaker global crude markets. He noted that a similar collaborative approach between regulators and industry had contributed to lower liquefied petroleum gas prices and expressed optimism that the same model could improve pricing in the petrol market.

The outcome of the discussions is likely to be closely watched by businesses and households alike, as fuel prices remain one of the biggest drivers of inflation in Nigeria’s economy. Any sustained decline in pump prices could ease pressure on transport costs, food prices, and broader consumer spending, while offering an early test of whether Nigeria’s deregulated fuel market can deliver lower prices when international market conditions improve.

Source: Accra Street Journal 

Last Updated on July 6, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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