Why Are Oil Marketers Exploiting Nigerians? PENGASSAN Demands Petrol at ₦750/Litre

Most Nigerians pay between ₦850 and ₦900 for one litre of petrol, even though crude oil on the global market costs about $60 per barrel.

This extra cost hurts drivers, small traders, farmers, and schools. Festus Osifo, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), says petrol should sell for just ₦700–₦750 per litre. Here’s how Nigeria can make that happen in clear, simple terms.

PENGASSAN compared the international PLAT price with our naira and crude prices. Once you convert the benchmark into local currency and break it down per litre, you arrive at roughly ₦700–₦750.

Currently, many fuel stations add extra fees because there is no clear formula for allowable charges.

If the regulator released an easy-to-read pricing table, both filling stations and motorists would know exactly what a fair price looks like, and marketers would no longer be able to hide hidden mark-ups.

Strengthening the Fuel Regulator

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for overseeing fuel marketers and protecting consumers. Yet PENGASSAN argues that weak enforcement has let retailers charge as much as ₦900 per litre without consequence.

By providing the NMDPRA with more resources and independence, and by requiring regular audits of pump prices, with results published online, in newspapers, and at petrol stations, the regulator can hold marketers accountable and ensure that pump prices are transparent and accurate.

Running Refineries Like Private Businesses

Nigeria’s three state-owned refineries have been plagued by frequent and prolonged shutdowns. Despite billions of naira, more than $2.5 billion spent on repairs, output remains low. PENGASSAN believes political interference often drives these stoppages more than genuine technical faults.

Adopting the same ownership split used by Nigeria LNG, where the government holds 49 per cent and private investors 51 per cent, could introduce the commercial discipline needed to keep refineries running smoothly and reliably.

Sharing the Security Burden

Currently, oil companies pay large sums to guard their pipelines and facilities against theft and sabotage. These security expenses ultimately appear in the pump price.

If the federal government took responsibility for protecting oil infrastructure, companies could reduce their costs and pass the savings on to consumers.

Better security would also mean fewer pipeline leaks, less environmental damage, and a steadier fuel supply nationwide.

Choosing Talk Over Strikes

PENGASSAN has sometimes used strikes to press for change. While strikes do attract attention, they also disrupt the fuel supply chain. In a recent dispute with Sterling Oil over hiring practices, the union chose negotiation instead of industrial action and reached a swift settlement.

Regular, structured dialogue among unions, regulators, and oil companies can identify and resolve problems more efficiently, ensuring that petrol continues to flow and that workers’ concerns are addressed without interruption.

Linking Global Prices to Local Pumps

When crude oil prices fall on international markets, Nigerians rarely see an immediate drop at their local pumps. Consumers rightly expect relief when global markets soften.

Introducing an automatic adjustment rule, so that pump prices fall by a set percentage whenever crude drops below a certain level, would ensure that drivers feel the benefit of lower oil prices within days, not months. Transparent formulas like this build trust in the system.

Acting on Proven Policies

PENGASSAN first proposed both a transparent pump-pricing template and the NLNG equity model more than 15 years ago. These ideas have already proven successful in other segments of Nigeria’s oil and gas industry.

Turning these long-standing recommendations into law would unlock significant savings and bring much-needed stability to the sector. Implementing tested, familiar solutions only requires the political will to move from paper proposals to real change.

By publishing clear pricing formulas, empowering the NMDPRA, using public–private partnerships for refineries, handling security at the national level, favouring dialogue over strikes, and linking pump prices directly to global benchmarks, Nigeria can finally see petrol sell at a fair rate of ₦700–₦750 per litre—benefiting every road user and strengthening the nation’s economy.