Petrol, diesel, LPG prices to keep falling — FG

The Federal Government has projected a continued decline in the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) across Nigeria, citing improved supply levels, increased competition and growing private sector investments in the oil and gas industry.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Mohammed, made this known on Sunday during an inspection of facilities operated by Aradel Holdings Plc in Ogbele community, Ahoada East Local Government Area of Rivers State.

Mohammed said Nigerians were gradually moving towards more affordable energy as market conditions improve, noting that rising supply was already driving down prices.

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

He explained that the removal of fuel subsidy had allowed market forces to operate more efficiently, creating a competitive downstream sector capable of guaranteeing adequate supply at affordable prices.

“Sustained competition, rather than subsidies, will ensure the availability of petrol and gas at reasonable prices for Nigerians,” Mohammed added.

The NMDPRA boss stressed the need for more refineries with advanced processing capacity to produce petrol, diesel, LPG, fuel oil and naphtha, adding that Nigeria’s long-term goal was not only to meet domestic demand but also to export petroleum products to Africa, Europe and the Americas.

However, he noted that local consumption must first be fully satisfied before large-scale exports could begin.

Mohammed also said President Bola Tinubu’s decision to remove fuel subsidy—his first major policy move—had unlocked private sector participation and spurred investments across the oil and gas value chain.

On the state-owned refineries, he explained that their operational status remained largely under the control of the Nigerian National Petroleum Company Limited (NNPCL), while NMDPRA was working with the company to ensure crude oil supply and product delivery to the Port Harcourt and Warri refinery reserves.

According to him, the restoration of product loading activities at the refineries would stimulate local economies and revive distribution in host communities, even before full-scale refinery operations resume.

Mohammed described the midstream sector as a major driver of Nigeria’s economic growth, capable of boosting manufacturing, power generation and transportation. He said the facilities inspected during his three-day operational tour of Rivers State demonstrated that Nigerian companies had the capacity to build, finance and operate world-class energy infrastructure.

He singled out Aradel Holdings as a strong example, noting that the company had successfully operated a refinery sustainably without foreign operatorship and had supplied gas to Nigeria Liquefied Natural Gas (NLNG) for about 13 years.

Mohammed disclosed that Aradel’s ongoing expansion would enable the loading of petrol from its refinery before the end of 2027. He added that the company currently operates an 11,000-barrels-per-day refinery and a virtual gas pipeline that distributes compressed natural gas across different parts of the country.

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

In his response, the Managing Director of Aradel Holdings, Adegbite Falade, thanked NMDPRA for its regulatory support, assuring that the company remained committed to expanding refining capacity, commercialising gas and eliminating routine gas flaring.

“We are already scaling up our operations to meet rising demand. Aradel is determined to be part of the long-term solution to Nigeria’s energy supply challenges,” Falade said, adding that Nigerians should expect continued expansion, local value addition and prioritisation of domestic energy needs.