PENGASSAN urges transparency in fuel pricing, warns against consumer exploitation

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to implement a clear and transparent pump pricing framework to protect consumers from being overcharged.

PENGASSAN President, Mr Festus Osifo, made the appeal during a world news conference held in Abuja on Monday. He expressed concern that petroleum marketers continue to exploit Nigerians through inflated pump prices, despite the decline in global crude oil prices.

Osifo noted that even when crude oil was trading at 60 dollars per barrel, petrol was still being sold between N850 and N900 per litre, with no relief for consumers.

“This unjustifiable pricing persists because the NMDPRA has failed to adequately discharge its regulatory responsibilities,” he stated.

“It is the duty of the regulator to ensure that Nigerians are not taken advantage of. We are therefore urging the NMDPRA to introduce a platform where the expected pump price ranges are published regularly for the public to see.

“They must be empowered to carry out their mandate fully. Everything possible must be done to safeguard Nigerians from exploitative pricing. If this situation continues unchecked, it means that even if crude drops to 50 dollars per barrel, the benefits will not trickle down to the average citizen,” Osifo warned.

He commended the federal government for signing the Executive Order aimed at reforming the upstream oil and gas sector, particularly concerning the reduction of operational costs for oil companies.

“One of the major challenges facing Nigeria’s oil and gas sector is the high cost incurred by upstream companies in securing their facilities,” Osifo said.

“Whether onshore, offshore, in shallow or deep waters, these companies are forced to deploy multiple security vessels for just one installation. They pay daily for the vessels, the crew, and the fuel. This is not the case in many other oil-producing countries.”

He identified this security burden as a significant factor driving international oil companies (IOCs) to withdraw from the Nigerian market.

Addressing the persistent failure of Nigeria’s refineries, Osifo reiterated PENGASSAN’s long-standing recommendation that the federal government adopt the Nigeria Liquefied Natural Gas (NLNG) operational model.

“For more than 15 years, we have consistently advised the government to apply the NLNG ownership structure to our refineries. Under this model, the government would hold 49 percent equity while private investors retain 51 percent. It is a tested and proven system,” he explained.

He argued that political interference in national asset management has hindered meaningful progress, and adopting the NLNG model could offer a viable path toward sustainable refinery operations.

Osifo also revealed that PENGASSAN had reached an amicable resolution with Sterling Oil Company regarding a dispute over expatriate staffing practices.