The Federal Government has expressed confidence that the prices of petrol, diesel and Liquefied Petroleum Gas (LPG), commonly known as cooking gas, will continue to decline across the country.

The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saidu Mohammed, disclosed this during an inspection visit to Aradel Holdings Plc facilities in Ogbele community, Ahoada East Local Government Area of Rivers State, on Sunday, January 25, 2026.

Mohammed attributed the anticipated reduction in energy prices to increased supply, growing competition and sustained private sector investments in the oil and gas industry.

According to him, improved supply conditions are gradually making energy more affordable for Nigerians, with market competition already driving price stability.

He noted that the effects of competition are evident in the downstream sector, citing the drop in petrol prices from about ₦1,000 to ₦800 per litre in some areas.

“The more supply we have, the lower the price. What we are seeing today is the impact of competition,” the NMDPRA boss said.

Mohammed explained that the removal of fuel subsidy has allowed market forces to operate efficiently, leading to better supply management and pricing outcomes.

He added that sustained competition, rather than subsidies, remains the most effective way to guarantee adequate and affordable supply of petrol and gas nationwide.

The NMDPRA chief also emphasised the need for more refineries with advanced conversion capacity to produce diesel, fuel oil, naphtha, LPG and petrol.

He said Nigeria aims not only to meet domestic demand but also to export petroleum products to markets in Africa, Europe and the Americas, noting however that local consumption must be sufficiently supplied before large-scale exports begin.