The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has explained when Nigerians may begin to see a reduction in petrol prices.
George Ene-Ita, Head of Public Affairs at the NMDPRA, said petrol prices could become more affordable when local refineries are able to produce more fuel consistently.
He made this known in a recent interview while reacting to the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, across the country.
Petrol prices have increased significantly in the past two weeks, rising from between N1,210 and N1,275 per litre to between N1,310 and N1,350 per litre in many locations.
The increase followed higher ex-depot and gantry prices announced by depot owners and the Dangote Refinery.
Ene-Ita explained that petrol prices in Nigeria are now fully deregulated, meaning that prices are largely influenced by market conditions.
He said several factors affect the price of petrol, including the level of domestic refining, the availability and cost of crude oil used by refineries, and the time it takes for crude oil sourced offshore to reach refineries.
According to him, these factors can cause changes in petrol prices from time to time.
Speaking on when Nigerians could expect some relief, Ene-Ita said prices could become more favourable when Nigeria’s domestic refining sector becomes stronger and more competitive.
He said, “Perhaps when the domestic refining ecosystem becomes more robust, competitive and sustainable, the issues regarding pricing will become clearer and more beneficial to consumers.”
The NMDPRA official’s comments suggest that increased local refining capacity could help reduce the pressure on petrol prices and make fuel more affordable for Nigerians.
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