Price Of Petrol, Cooking Gas, Diesel Will Continue To Reduce – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) will continue to decline across the country.

Naijaonpoint reports that the Authority’s Chief Executive, 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 attributed the expected price drop to increased supply, heightened competition and sustained private sector investment in the oil and gas industry.

“The more supply we have, the lower the price, and this is already evident as petrol has dropped from about ₦1,000 to ₦800 per litre due to competition,” he said.

According to him, improved supply has continued to push Nigeria towards affordable and stable energy pricing.

The NMDPRA boss explained that the removal of fuel subsidy had allowed market forces to operate freely, leading to improved efficiency in the downstream sector.

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

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

He noted that Nigeria’s long-term plan goes 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.

The NMDPRA chief said President Bola Tinubu’s support for a free‑market economy had unlocked massive private sector participation, noting that subsidy removal was the President’s first major policy decision.

According to him, the policy stimulated investments across the oil and gas value chain.

On the condition of government-owned refineries, Mohammed said responsibility largely rests with the Nigerian National Petroleum Company Limited (NNPCL).

He added that NMDPRA was engaging the company to ensure crude oil and product delivery to the Port Harcourt and Warri refineries.

“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 said Nigeria’s economic growth depended largely on the rapid expansion of locally owned midstream assets, describing the sector as the strongest driver of economic development.

He noted that facilities inspected during his three‑day tour in Rivers State demonstrated Nigerians’ capacity to design, finance, build and sustainably operate world‑class energy infrastructure.

The NMDPRA chief singled out Aradel Holdings, noting that the company had proven that Nigerians could efficiently operate a refinery without foreign operatorship.

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

“Aradel has supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years, operates an 11,000‑barrels‑per‑day refinery, and runs a virtual gas pipeline distributing compressed natural gas across Nigeria,” Mohammed said.

Dangote Refinery Alone Not Enough — NMDPRA

Mohammed stressed that the Dangote Refinery alone cannot meet Nigeria’s domestic, continental and global demand, urging more investments in refining and midstream infrastructure.

He assured investors of continued regulatory incentives from the Authority to attract large‑scale investments into the sector.

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