The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reassured Nigerians that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) are expected to continue declining nationwide.
The assurance was given by the Authority’s Chief Executive Officer, Mr Saidu Mohammed, during an inspection visit to Aradel Holdings Plc facilities in Ogbele, Ahoada East Local Government Area of Rivers State.
Mohammed attributed the anticipated reduction in prices to increased product supply, growing competition and sustained private sector investments in the oil and gas industry.
According to him, rising supply levels have already begun to impact pricing, noting that competition has helped drive petrol prices down from about ₦1,000 to around ₦800 per litre.
He explained that the removal of fuel subsidy has allowed market forces to function properly, improving efficiency within the downstream sector.
Mohammed added that long-term affordability and availability of petroleum products would be sustained through competition rather than subsidies.
The NMDPRA boss stressed the importance of expanding refinery capacity with modern conversion technology capable of producing diesel, fuel oil, naphtha, LPG and petrol.
He said Nigeria’s long-term vision includes exporting refined petroleum products to Africa, Europe and the Americas, but emphasised that local demand must first be adequately met.
Mohammed noted that President Bola Tinubu’s commitment to a free-market economy, beginning with subsidy removal, had unlocked significant private sector participation across the oil and gas value chain.
Speaking on government-owned refineries, he said their operations largely fall under the Nigerian National Petroleum Company Limited (NNPCL), adding that the Authority is engaging the company to ensure crude oil and product supply to the Port Harcourt and Warri refineries.
He explained that restoring product loading at these facilities would stimulate local economies and revive distribution activities in host communities, even before full-scale refinery operations resume.
Mohammed described the expansion of indigenous midstream assets as a key driver of Nigeria’s economic growth, noting that facilities visited during his tour demonstrated Nigerians’ ability to develop and operate world-class energy infrastructure.
He singled out Aradel Holdings as an example of successful indigenous operatorship, revealing that the company’s expansion plans would allow petrol loading from its refinery before the end of 2027.
He disclosed that Aradel currently supplies gas to Nigeria Liquefied Natural Gas (NLNG), operates an 11,000-barrels-per-day refinery, and manages a virtual gas pipeline distributing compressed natural gas nationwide.
Mohammed also stated that the Dangote Refinery alone cannot meet Nigeria’s domestic and international demand, calling for increased investment in refining and midstream infrastructure. He assured investors of continued regulatory incentives to support large-scale investments.
In response, Aradel Holdings’ Managing Director, Mr Adegbite Falade, expressed appreciation for NMDPRA’s support, reaffirming the company’s commitment to expanding refining capacity, commercialising gas resources and eliminating routine gas flaring.
Falade said Aradel is scaling operations to meet rising demand and contribute to long-term solutions to Nigeria’s energy supply challenges, with a strong focus on domestic needs and local value addition.