Lokpobiri flags fuel price stickiness despite easing US-Iran tensions

…says deregulation must not become an avenue for profiteering

As global energy markets breathe a sigh of relief following the de-escalation of tensions between the US and Iran, which has led to a drop in global crude oil prices, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), has questioned why there is no commensurate downward adjustment in the prices of petrol across the country.

Lokpobiri, who addressed the 2026 ‘General Counsels and Legal Advisers forum’ in Abuja on Monday, emphasised that while the market forces are expected to restore equilibrium in fuel prices, the regulator has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering.

The tensions between the US and Iran had seen the global price of crude soaring to over $100 per barrel in the past months, and with that, retail prices of petrol increased from an average price of N800 per litre to N1400 across Nigeria.

However, BusinessDay’s check showed that while the global crude oil price has dropped to $72 per barrel, the decline is yet to reflect in the retail price of petrol in Nigeria, as most fuel stations still sell petrol at over N1,250 per litre.

Lokpobiri, questioning why there is no commensurate downward adjustment in the prices of petrol across the country said, “Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product? When someone pays for 10 litres of Premium Motor Spirit (PMS), they should receive exactly 10 litres, not less.

“Furthermore, following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened.

“While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act (PIA),” Lokpobiri said.

According to him, the decision made by President Bola Tinubu has paved the way for the operationalisation of the Dangote Refinery and other refinery projects currently underway and also ensuring that artificial scarcity become a thing of the past.

He emphasized that compliance, therefore, is fundamental adding that lawyers advising licensed operators have a critical responsibility to ensure that their clients comply with all applicable laws and regulations, thereby safeguarding their licences and avoiding regulatory sanctions.

Stressing that Nigeria’s petroleum sector is entering a new phase with domestic refining capacity expanding and private sector participation deepening, Lokpobori urged the counsels to maintain their positions as strategic partner, in commercial decision-making, in regulatory design, and in national development.

He said, “The legal advisers and general counsel gathered in this room sit at the precise intersection where law meets commercial reality. You are not simply interpreters of rules. You are, whether you fully recognise it or not, architects of investor experience.

“New opportunities are emerging across every segment of the midstream and downstream value chain but opportunities alone do not guarantee investment. Investors require confidence, confidence in policy direction, confidence in regulatory institutions, confidence in contractual arrangements, and confidence that disputes can be resolved fairly and efficiently.

“Building that confidence is a collective responsibility, as government, we will continue to provide policy consistency, regulators must continue to improve transparency, stakeholder engagement, and the quality of their service delivery, industry participants must maintain high standards of governance and compliance and legal advisers must continue to serve as trusted partners, strengthening the integrity and credibility of the sector, one well-drafted regulation, one clear guideline, one honest piece of counsel at a time.”

In his remark, Rabiu Umar, Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that compliance, while essential, is not an end in itself. He stressed that the broader objective of pursing compliance among industry players, is to create a petroleum Industry characterised by certainty, predictability, transparency and confidence.

Citing the Petroleum Industry Act 2021, Rabiu said that it has created new institutions, established new market frameworks, introduced new compliance obligations, created new opportunities for investment, and placed new responsibilities on regulators, operators and legal practitioners alike.

He said, “Five years into the implementation of the PIA, we have reached an important stage in our journey. The focus is no longer solely on what the law says. The focus is increasingly on how the law is being implemented, how regulations are operating in practice, how markets are responding to reforms, how investors are assessing opportunities, and how institutions are working together to achieve the objectives that the legislation envisioned.”