Prices of Petrol, Diesel, LPG Will Continue to Fall, Says FG

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) will continue to decline nationwide.

The Authority’s Chief Executive, Mr Saidu Mohammed, stated this on Sunday in Ogbele community, Ahoada East Local Government Area of Rivers State during an inspection of Aradel Holdings Plc facilities.

Mohammed attributed the expected price reduction to rising supply, increased competition and sustained private sector investments in the oil and gas sector.

According to him, Nigerians are gradually moving towards affordable energy as improved supply continues to drive price stability.

“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.

Mohammed explained that the removal of fuel subsidy had allowed market forces to function properly, improving efficiency across the downstream sector.

“Sustained competition, rather than subsidies, will guaranty adequate supply of petrol and gas at affordable prices for Nigerians,” he added.

He stressed the need for additional refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG and petrol.

The NMDPRA chief said Nigeria’s ambition extended beyond local consumption to exporting petroleum products to Africa, Europe and the Americas.

“However, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.

Mohammed noted that President Bola Tinubu strongly supported a free-market economy, recalling that subsidy removal was the president’s first major policy decision.

According to him, the policy unlocked private sector participation and stimulated investments across the oil and gas value chain.

On the state-owned refineries, Mohammed said their operational conditions largely remained the responsibility of the Nigerian National Petroleum Company Limited (NNPCL).

NMDPRA, he said, was engaging NNPCL to ensure the delivery of crude oil and petroleum product to the Port Harcourt and Warri refineries reserves.

“Delivery of products to the reserves and restoring loading activities at the refineries will boost local economies and revive product distribution within host communities.

“Once product loading resumes, Nigerians will begin to feel the economic impact, even before full refinery operations,” he said.

Mohammed added that Nigeria’s economic growth depended heavily on the rapid expansion of locally-owned midstream assets.

He said facilities inspected during his three-day operational tour across Rivers State demonstrated that Nigerians had the capacity to design, finance, build and sustainably operate world-class energy infrastructure.

He singled out Aradel Holdings, nothing that the company had proven that Nigerians could efficiently operate a refinery sustainably without foreign operatorship.

Mohammed disclosed that Aradel’s ongoing expansion would enable the loading of petrol from its facility before the end of 2027.

“Aradel has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years, alongside also operating an 11,000-barrels-per-day refinery.

“The company also runs a virtual gas pipeline, producing compressed natural gas distributed across several parts of Nigeria,” he said.

He urged further investments in refining, noting that the Dangote Refinery alone could not meet domestic, continental and global demand.

He described the midstream sector as Nigeria’s strongest driver of economic growth, capable of stimulating manufacturing, power generation, transportation and other productive sectors.

Mohammed gave the assurance that the NMDPRA would continue to provide regulatory incentives to attract large-scale investments into the midstream sector.

Responding, the Managing Director of Aradel Holdings, Mr Adegbite Falade, thanked NMDPRA for its regulatory support and confidence in operators.

Falade said the company remained committed to expanding refining capacity, commercialising gas and eliminating routine gas flaring.

“We are not overwhelmed by rising demand, as the company is already expanding its refining capacity beyond current levels.

“Aradel aims to be part of the long-term solution to Nigeria’s energy supply challenges. Nigerians should expect continued scaling, local value addition and prioritisation of domestic energy needs,” he said.(NAN)