Nigeria orders crackdown on petrol pricing as crude oil drops from $120 to $72/barrel

Nigeria's federal government has instructed the country's downstream petroleum regulator to ensure fuel marketers do not exploit consumers by keeping petrol prices elevated despite a sharp decline in global crude oil prices.

• Nigeria has ordered its downstream petroleum regulator to prevent fuel marketers from profiteering despite the country's deregulated fuel market.
• The directive follows a sharp decline in global crude oil prices, while petrol prices at Nigerian filling stations have remained largely unchanged.
• The government also wants stricter monitoring to ensure motorists receive the correct quantity of fuel purchased.
• Officials say predictable regulation under the Petroleum Industry Act is critical to attracting investment into Nigeria's oil and gas sector.

Speaking at the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja on Monday, June 29, 2026, Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri said deregulation of the downstream sector should not become a licence for excessive pricing.

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His remarks come after international benchmark crude prices retreated from about $120 per barrel during heightened geopolitical tensions to around $72 per barrel last week following the easing of tensions in the Middle East. Despite the decline, retail petrol prices in Nigeria have remained largely unchanged.

"Following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened," Lokpobiri said.

He directed the NMDPRA to exercise its statutory powers under the Petroleum Industry Act (PIA) to prevent deregulation from becoming "an avenue for profiteering", while allowing market forces to operate.

The minister also called on the regulator to intensify oversight of fuel dispensing at filling stations, stressing that consumers must receive the exact quantity of fuel they pay for.

"When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less," he said.

Nigeria fully deregulated its downstream petroleum market after the removal of long-standing fuel subsidies, allowing market forces to determine pump prices.

However, the policy has remained politically sensitive as consumers continue to grapple with higher transport and living costs.

Lokpobiri argued that deregulation had strengthened the country's energy security, noting that Nigeria avoided fuel shortages despite recent geopolitical tensions partly because of increased domestic refining capacity.

Beyond consumer pricing, the minister urged regulators to prioritise consistency and predictability in implementing the Petroleum Industry Act, arguing that investor confidence depends not only on legislation but also on transparent and stable regulation.

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"The PIA gave us the architecture. What we must now build is the culture, the institutional habits and the regulatory character that make the law's objectives real for every investor evaluating Nigeria," he said.

NMDPRA Chief Executive Rabiu Umar echoed that message, saying the industry's focus had shifted beyond legal compliance towards creating a regulatory environment that offers certainty and transparency for investors.

"Compliance remains the foundation. The broader objective is to create a petroleum industry characterised by certainty, predictability, transparency and confidence," Umar said.

He acknowledged that some aspects of the regulatory framework remain open to interpretation and said the authority would continue engaging industry stakeholders to improve implementation.

The comments come as Africa's largest oil producer seeks to attract fresh investment into its petroleum industry while balancing market liberalisation with growing public pressure over the cost of fuel and broader inflationary pressures.