FG sets July date for petrol pricing summit
The Federal Government has fixed July 23 and 24, 2025, for a national stakeholder forum to address mounting concerns over petrol pricing and supply dynamics in the downstream sector, amid growing agitation by independent marketers for price regulation.
The planned summit, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is expected to bring together industry operators, marketers, refiners, and government officials to deliberate on petroleum pricing standards, feedstock adequacy, and strategies to stabilise the deregulated market.
The Executive Director of Hydrocarbon Processing Plants, Installation and Transportation Infrastructure at the NMDPRA, Francis Ogaree, confirmed the date and summit at the just concluded 24th Nigeria Oil and Gas Energy Week held in Abuja.
The Director further stressed the need for dialogue to build a resilient pricing system in the post-subsidy era. Recall that there has been agitation and concerns expressed by petroleum marketers over sudden changes in the price of Premium Motor Spirit, also known as petrol, without prior notice by the Dangote refinery.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, has repeatedly emphasised the need for a stable market and consistent energy security, advocating for mechanisms to analyse price fluctuations and ensure they don’t negatively impact the industry.
Gillis-Harry called for transparency in pricing, particularly in relation to the impact of Dangote’s price reductions on retailers who may have purchased fuel at higher prices. They have also called for fair pricing practices and the avoidance of untoward practices in the industry.
Similarly, the Petroleum and Natural Gas Senior Staff Association of Nigeria last month questioned the petroleum pricing regime, stressing that petroleum marketers are exploiting Nigerians through inflated petrol prices and insisted that the current pump price of PMS should range between N700 and N750 per litre.
Responding to these concerns, Ogaree said the NMDPRA was aware of the operational uncertainties confronting players in the sector, and has taken concrete steps to standardise pricing while encouraging more investment in local refining.
Speaking during the panel session titled, “Building a resilient and competitive refining sector”, he said, “We are engaging stakeholders at our forum, where we address the issues and proffer solutions. I would like to remind you that the NMDPRA has only been in existence for three and a half years. And in that period, we have achieved giant strides in the number of licenses we have given and in addressing the issues.
“Even on the issue of petroleum pricing, which is another one that we are facing now and relates to standardisation. It is a work in progress, and that is why at the latter part of this month, exactly on July 23 to 24, a two-day event, we will be talking about petrol pricing. Again, that is to allay some fears and put in some standards. The issue of pricing, everyone knows that it is a sensitive one and peculiar from one country to another, and the authority is working.”
On the outlook for refining capacity and supply security, Ogaree revealed that Nigeria now has a total of 10 operational and near-operational refineries, including the three NNPC refineries, the 650,000bpd Dangote refinery, and six modular refineries.
He added that some of the upcoming refineries would require between 1,000 and 200,000 barrels per day and are expected to commence operations by 2026.
“We have about 10 refineries right now. The three Nigerian National Petroleum Company refineries. We have Dangote refinery and six modular refineries. When I look at the combined capacity for those refineries, we need about 1,124,000 barrels per day.”
He noted, however, that the success of the downstream market hinged on the availability of crude oil feedstock to serve the growing number of licensed refiners.
“We know our current production capacity. These are just operating refineries. When I think about new refineries coming up very soon. Some of them need 200,000 barrels to 1,000 barrels, and I compute them together. Some of them would be on onstream by 2026.
“You know that this number of barrels has to grow, and there has to be more production if we are to meet up. The apparent fear, and I must be sincere, is on the feedstock. We have given out 47 licenses, all of which are to do establishments, construction, and they all go into operation. We must be able to meet their demands when they all go on stream.”
(Punch)
