The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has accused petroleum marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of Premium Motor Spirit (PMS) should range between N700 and N750 per litre.

Speaking at a press conference in Abuja on Monday, PENGASSAN President, Comrade Festus Osifo, criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

He said that despite crude prices dropping from about $80 to $60 per barrel, petrol continues to sell at around N900 per litre.

“In the downstream today, in the Nigerian oil and gas industry, we have seen a trend,” Osifo said. “When the price per litre of petrol was around N900, crude oil was selling at about $80 per barrel. Today, with crude hovering between $62 and $65, there has been no commensurate reduction in the pump price.”

Osifo attributed the pricing inconsistency to the failure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to effectively monitor and regulate pricing under the deregulation framework.

“NMDPRA should not watch the suppliers of products exploit the citizenry on the pretence of deregulation,” he said.

Explaining the pricing mechanism, Osifo stated that crude oil prices and the exchange rate account for about 80 percent of the final retail price of PMS.

ased on prevailing international pricing benchmarks, he said the cost of fuel should have adjusted downward.

“There is what we call PLAT,” he said, referring to Platts oil price benchmark. “If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

Osifo acknowledged the profit motive of businesses but maintained that regulatory oversight is necessary to ensure fairness.

“Yes, we understand that people have invested in their business and want to make profits. We don’t begrudge any business organisation that wants to maximise profit. That is why we have the regulators,” he said.

He called on NMDPRA to immediately begin publishing pricing templates to ensure transparency and to prevent arbitrary pricing under the deregulated system.

“We don’t begrudge businesses for making profits. But it is the regulator’s responsibility to protect the people. If this exploitation continues, Nigerians will never benefit from global oil price drops—only bear the burden when prices rise,” he said. (The Guardian)