The Nigerian federal government has issued a direct warning to petroleum marketers, prohibiting the use of profits from previously acquired expensive fuel inventories as a justification for maintaining high petrol prices.
Authorities insist that retailers must align their pricing with current market realities rather than relying on legacy cost structures.
This directive reinforces earlier instructions from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which has previously warned against profiteering and arbitrary price hikes.
The government’s stance is clear: pump prices for Premium Motor Spirit (PMS) must reflect the recent decline in global crude oil benchmarks, not historical procurement costs.
The intervention highlights ongoing tensions between the state and private fuel distributors over pricing mechanisms.
While marketers have often cited high acquisition costs for older stock to defend elevated retail prices, regulators argue that such practices exploit consumers and distort the market.