The Federal Government has cautioned petroleum marketers against using old, high-cost fuel inventories as an excuse to keep petrol prices elevated, insisting that Nigerians must feel the impact of cheaper replacement costs at the pump.

The warning was delivered at a high-level stakeholders’ meeting on cost-reflective pricing of Premium Motor Spirit, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja. The session brought together major players across the value chain, including representatives of Dangote Petroleum Refinery, major and independent marketers, depot owners, transporters and consumer protection officials.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, told operators that while they may have bought some volumes when crude oil prices were higher, such temporary gains must not be used to justify sustained high pump prices once global prices and replacement costs fall.

He stressed that in a deregulated market, reductions in crude prices and import or refinery costs should translate into timely cuts in both ex-depot and retail prices. Marketers, he said, must clearly distinguish between genuine replacement costs and “windfall gains” arising from inventory management.

Lokpobiri acknowledged that petrol pricing is shaped by multiple factors, including exchange rates, logistics and financing, but maintained that deregulation was never intended to permit excessive pricing or market distortions. Instead, it should deepen competition, improve efficiency and deliver value to consumers.

The minister linked unjustifiably high fuel prices to broader economic pressures, warning that elevated energy costs feed directly into transportation, food and manufacturing expenses, thereby fuelling inflation. He noted that while inflation has eased from previous highs, keeping energy prices above what market fundamentals support could erode recent macroeconomic gains.

He directed the NMDPRA to intensify market surveillance, enforce pricing transparency and ensure that any decline in underlying costs is promptly reflected in pump prices nationwide. Consumers, he said, must be confident that prices are driven by fair competition rather than information gaps or anti-competitive practices.

Lokpobiri also called for the rapid operationalisation of the National Strategic Stock, describing it as vital for energy security and for cushioning future supply disruptions and price shocks.

NMDPRA Authority Chief Executive, Rabiu Umar, said the engagement was aimed at interrogating the gap between falling replacement costs and relatively sticky retail prices. Citing recent success in driving down domestic cooking gas prices through similar dialogue, he expressed optimism that collaborative action with marketers could yield comparable relief in the petrol market.