- Fuel Prices Will Keep Falling As Supply Improves – NMDPRA
- Subsidy removal boosts efficiency and private investment in oil sector
- More refineries needed as Dangote alone cannot meet demand
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has assured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas will continue to decline nationwide, driven by increased supply and growing competition within the oil and gas sector.
The assurance was given by the Authority’s Chief Executive, Saidu Mohammed, during an inspection tour of Aradel Holdings Plc facilities in Ogbele community, Ahoada East Local Government Area of Rivers State.
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EKO HOT BLOG reports that Mohammed attributed the gradual reduction in fuel prices to sustained private sector investment and improved product availability. He noted that competition has already led to a drop in petrol prices from about ₦1,000 to ₦800 per litre in many locations.
According to him, the removal of fuel subsidy has allowed market forces to function more efficiently, improving supply stability and encouraging new investments across the downstream segment.
Mohammed stressed that long term affordability of petroleum products would be achieved through sustained competition rather than government subsidies. He added that Nigeria requires more refineries with advanced conversion capacity to meet domestic demand and support future exports.
He explained that while Nigeria plans to export petroleum products to Africa, Europe and the Americas, local demand must first be adequately met by indigenous operators.
On government owned refineries, Mohammed said the Nigerian National Petroleum Company Limited remains responsible for operations, adding that engagements were ongoing to ensure crude supply and product loading at the Port Harcourt and Warri refineries.
He stated that restoring loading activities would stimulate local economies and improve product distribution within host communities even before full operations resume.
The NMDPRA chief described midstream infrastructure as a key driver of economic growth, commending Aradel Holdings for demonstrating Nigerian capacity to design, finance and operate energy facilities.
He disclosed that Aradel’s expansion project would enable petrol loading before the end of 2027, but emphasised that the Dangote Refinery alone cannot meet Nigeria’s energy needs.
Responding, Aradel’s Managing Director, Adegbite Falade, reaffirmed the company’s commitment to expanding refining capacity, commercialising gas and prioritising domestic energy supply.
