The Federal Government has called on marketers to reduce the pump price of petrol to reflect falling crude costs in the international market.

The Minister of state for Petroleum Resources (Oil), Heineken Lokpobiri, made the call on Monday at a stakeholders’ meeting with the marketers and other downstream petroleum sector operators.

The minister demanded that the sharp drop in Brent crude from about $118 a barrel earlier this year to below $70 must be reflected at the pumps.

“The price of fuel should reflect what is going on now,” he said, urging marketers to pass the cost reductions to consumers.

He queried why retail pump prices for Premium Motor Spirit, PMS, and other petroleum products have not fallen in line with lower international replacement costs.

According to him, deregulation did not mean allowing what he called ‘excessive profits’, stating that government preferred frank talks over heavy-handed enforcement

The minister added that the petroleum marketers must build consensus on how to lower pump prices without killing business viability.

“We would rather sit down with you and agree a practical framework than try to impose measures we cannot effectively enforce,” he said

The meeting, convened at the directive of the Ministry of Petroleum Resources by the sector regulator, had in attendance officials from the FCCPC, Dangote Refinery, MEMAN, DAPPMAN, IPMAN, NARTO, PETROAN among others.
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