FG Warns Marketers Against Justifying High Petrol Prices

The Federal Government of Nigeria, represented by Minister of State for Petroleum Resources Heineken Lokpobiri, has issued a warning to petroleum marketers against using old stock to justify maintaining high petrol prices. The government insists that the benefits of lower replacement costs should be passed on to consumers, especially as global crude oil prices have declined.

This warning was made during a stakeholders' meeting held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja. The meeting included representatives from various organizations, including TotalEnergies, Eterna PLC, and the Depot Petroleum Product Retail Association of Nigeria.

Lokpobiri stated that while marketers may realize temporary gains from inventory purchased at higher prices, this should not be a basis for sustaining elevated pump prices. He emphasized the need for the market to distinguish between legitimate replacement costs and extraordinary gains arising from inventory management, urging immediate transmission of benefits from falling global crude oil prices to Nigerian consumers.