The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said Nigerians may begin to see lower petrol prices when domestic refining becomes stronger and more competitive.
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The agency’s Head of Public Affairs, George Ene-Ita, disclosed this while explaining the factors responsible for recent changes in the pump price of Premium Motor Spirit (PMS).
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His comments come amid another increase in petrol prices across the country, with pump prices rising in several locations over the past two weeks.
Petrol prices have reportedly moved from between ₦1,210 and ₦1,275 per litre to about ₦1,310 and ₦1,350 per litre after some depot operators and the Dangote Refinery increased their ex-depot and gantry prices.
Ene-Ita explained that petrol pricing in Nigeria is fully deregulated, meaning market conditions play a major role in determining what consumers pay at filling stations.
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He said fluctuations in the price of petrol are influenced by several factors, including the level of domestic refining, the availability and cost of crude oil used as refinery feedstock and the time required for crude sourced offshore to reach refineries.
According to him, stronger domestic refining capacity could eventually provide greater stability and more favourable prices for consumers.
He said the pricing situation would become clearer and potentially more beneficial to Nigerians when the local refining industry becomes more robust, competitive and sustainable.
The NMDPRA official’s position suggests that increased reliance on locally refined petroleum products could help reduce some of the factors contributing to petrol price volatility.
For consumers, however, petrol prices remain a major concern because changes in the cost of fuel have direct effects on transportation, food prices and other goods and services across the country.
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