ABUJA, Nigeria — In response to the recent decline in global crude oil prices, Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has ordered a crackdown on petrol pricing profiteering. This directive was issued during the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum on June 29, 2026.
The move comes after international benchmark crude prices dropped from $120 to $72 per barrel, yet retail petrol prices in Nigeria remained largely unchanged. Lokpobiri emphasized that deregulation of the downstream sector should not be a license for excessive pricing, directing the NMDPRA to utilize its statutory powers under the Petroleum Industry Act (PIA) to prevent deregulation from becoming an avenue for profiteering.
The Nigerian government aims to ensure that consumers receive the exact quantity of fuel for the price they pay, as the country’s deregulated fuel market has been a subject of political sensitivity. Despite the deregulation, which has strengthened the nation’s energy security, consumers continue to face higher transport and living costs.
The directive is a response to the discrepancy between the drop in global crude oil prices and the lack of downward adjustment in petrol prices in Nigeria.
The key questions now are the specific measures the NMDPRA will implement to prevent profiteering, how the government will enforce these regulations, and the expected impact on the Nigerian fuel market.
The Nigerian fuel market has experienced challenges with deregulation, with some reports suggesting that fuel marketers have exploited the system to increase prices. Understanding the costs and profit margins of fuel marketers in Nigeria could provide insight into the current situation and the potential for profiteering.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
