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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the prices of petrol, diesel and liquefied petroleum gas (LPG) are expected to continue to decline nationwide due to increased supply, competition and private sector investment.
NMDPRA’s Chief Executive, Saidu Mohammed, made the statement on Sunday during an inspection of facilities operated by Aradel Holdings Plc in Ogbele community, Ahoada East Local Government Area of Rivers State. Mohammed said improved supply conditions were contributing to price reductions, noting that petrol prices had dropped in some areas from about N1,000 to N800 per litre.
“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” Mohammed said.
He said the removal of fuel subsidies had allowed market forces to operate more effectively in the downstream sector and encouraged competition among operators.
“Sustained competition, rather than subsidies, will guaranty adequate supply of petrol and gas at affordable prices for Nigerians,” he added.
Mohammed said additional refineries with advanced conversion capacity were needed to increase the production of petrol, diesel, fuel oil, naphtha and LPG.
He added that Nigeria’s long-term objective included exporting petroleum products to Africa, Europe and the Americas after meeting domestic demand.
“However, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.
He said President Bola Tinubu supported a free-market approach to the oil and gas sector and that the subsidy removal had increased private-sector participation.
On the state-owned refineries, Mohammed said operational responsibility remained with the Nigerian National Petroleum Company Limited (NNPCL), adding that NMDPRA was engaging the company to ensure crude supply and product delivery to the Port Harcourt and Warri refineries.
