by Ola Williams, Abuja-
The Federal Government has assured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) will continue to decline nationwide, driven by increased supply, stronger competition and sustained private sector investment in the oil and gas sector.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), 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 said recent market trends already showed the impact of improved supply and competition, noting that petrol prices had fallen significantly in many parts of the country. “The more supply we have, the lower the price, and this is already evident as petrol has dropped from about N1,000 to N800 per litre due to competition,” he said.
According to him, the removal of fuel subsidy has allowed market forces to operate more efficiently in the downstream sector, creating room for private investors to expand capacity and stabilise prices. “Sustained competition, rather than subsidies, will guarantee adequate supply of petrol and gas at affordable prices for Nigerians,” Mohammed added.
He stressed the need for more refineries with advanced conversion capacity capable of producing 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, domestic demand must first be adequately met by local operators before large-scale exports can commence,” he said.
Mohammed noted that President Bola Tinubu’s decision to remove fuel subsidy as his first major policy move had unlocked private sector participation and stimulated investments across the oil and gas value chain.
On the state-owned refineries, he said their operations remained largely the responsibility of the Nigerian National Petroleum Company Limited (NNPCL), adding that the NMDPRA was engaging the company to ensure the delivery of crude oil and petroleum products to the Port Harcourt and Warri refinery reserves.
“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.
The NMDPRA chief described the midstream sector as a major driver of Nigeria’s economic growth, with the capacity to stimulate manufacturing, power generation, transportation and other productive sectors. He said facilities inspected during his three-day operational tour of Rivers State showed that Nigerians had the technical and financial capacity to build and operate world-class energy infrastructure.
Commending Aradel Holdings, Mohammed said the company had demonstrated that locally owned firms could efficiently and sustainably operate refineries without foreign operatorship. He disclosed that Aradel’s ongoing expansion would enable the loading of petrol 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 several parts of Nigeria,” he said.
He added that while the Dangote Refinery was a major milestone, it alone could not meet Nigeria’s domestic, continental and global demand, underscoring the need for more investments in refining and midstream assets. Mohammed assured investors of continued regulatory incentives from the NMDPRA to attract large-scale investments into the sector.
In his response, the Managing Director of Aradel Holdings, Mr. Adegbite Falade, thanked the regulator for its support, saying 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,” Falade said. “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.”
