The Federal Government has assured Nigerians that the prices of petrol, diesel and liquefied petroleum gas (LPG) will continue to decline nationwide, citing improved supply, stronger competition and rising private sector investments across the downstream oil and gas sector.
The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Saidu Mohammed, gave the assurance on Sunday during an inspection tour of Aradel Holdings Plc facilities in Ogbele community, Ahoada East Local Government Area of Rivers State.
Mohammed said the gradual fall in pump prices reflected the impact of deregulation and expanding domestic production capacity, noting that petrol prices had already dropped from about N1,000 to N800 per litre in some parts of the country.
“The more supply we have, the lower the price. That is what Nigerians are beginning to experience as competition increases,” he said. “Sustained competition, rather than subsidies, will guarantee adequate and affordable supply of petrol and gas.”
He explained that the removal of fuel subsidy had allowed market forces to function efficiently, encouraging new investments in refining, storage and distribution infrastructure, while stabilising product availability nationwide.
Mohammed stressed the need for more refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG and petrol, adding that Nigeria was positioning itself not only to meet domestic demand but also to export petroleum products to Africa, Europe and the Americas.
“However, our first responsibility is to ensure that Nigerians have adequate access to affordable fuel before we begin large-scale exports,” he said.
The NMDPRA chief also disclosed that the authority was working closely with the Nigerian National Petroleum Company Limited (NNPCL) to ensure steady crude supply and product evacuation at the Port Harcourt and Warri refineries.
“Restoring loading activities at these refineries will stimulate local economies and revive product distribution within host communities. Nigerians will begin to feel the impact even before full operations resume,” he added.
Mohammed said Nigeria’s economic growth depended largely on the rapid expansion of locally owned midstream assets, describing the sector as the strongest driver of industrialisation, power generation, transportation and manufacturing.
He singled out Aradel Holdings as proof that indigenous firms could sustainably operate world-class energy infrastructure, disclosing that the company’s ongoing expansion would enable it to commence petrol loading before the end of 2027.
“Aradel has supplied gas to Nigeria LNG for about 13 years and operates an 11,000-barrels-per-day refinery, alongside a virtual gas pipeline distributing compressed natural gas across several parts of the country,” he said.
He added that the Dangote Refinery alone could not meet Nigeria’s domestic, continental and global fuel demand, urging more investments in refining and gas infrastructure to deepen energy security.
Mohammed also reaffirmed President Bola Tinubu’s commitment to a free-market economy, noting that fuel subsidy removal was the administration’s first major policy decision, which had unlocked private sector participation and revitalised the oil and gas value chain.
Responding, the Managing Director of Aradel Holdings, Mr Adegbite Falade, commended NMDPRA for its regulatory support, pledging the company’s continued investment in refining expansion, gas commercialisation and the elimination of routine gas flaring.
“We are already scaling beyond current capacity and are committed to being part of the long-term solution to Nigeria’s energy challenges,” Falade said.
“Nigerians should expect sustained growth, increased local value addition and prioritisation of domestic energy needs.”
The Federal Government said the combined effect of rising supply, deepening competition and expanding indigenous investments would continue to drive fuel prices downward, easing pressure on households and businesses nationwide.
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