FG Orders Petrol Marketers to Reflect Lower Costs at Pumps

The Federal Government has warned petrol marketers against using old expensive stock to justify high pump prices. Heineken Lokpobiri, Minister of State for Petroleum Resources, gave the warning at a meeting organised by the petroleum regulator in Abuja. Lokpobiri said that as inventories are replenished at lower costs, those savings must be passed quickly and transparently to consumers. He noted that factors like exchange rates and logistics still affect prices, but deregulation was never meant to allow excessive charges. He pointed out that crude oil costs rose from about $61–65 per barrel in January to over $118 in April before falling back to around $71. Yet pump prices only fell from a peak of ₦1,596 per litre in May to about ₦1,296, a gap that risks fuelling inflation and undermining recent economic gains. The minister directed the regulatory authority to step up market surveillance and enforce pricing transparency. He also called for the quick operationalisation of a national fuel stock to boost energy security. The meeting included major refiners, marketers and consumer protection officials.

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