The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the recent fluctuations in fuel pump prices are a direct outcome of market forces, reflecting the operations of Nigeria’s fully deregulated petroleum sector. The authority made this statement in Abuja, emphasizing that price variations are no longer controlled by government regulation but respond to global supply and demand conditions.
George Ene-Ita, spokesperson for NMDPRA, told the News Agency of Nigeria (NAN) that differences in fuel prices across regions are purely market-driven. “Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. Therefore, pump price vagaries are purely a result of market dynamics,” he explained, responding to public concerns over rising costs at the pumps.
The recent increases in fuel prices coincide with the escalating conflict between Iran and a coalition of Israel and the United States, which has disrupted oil supply chains. On March 3, the Nigerian National Petroleum Company Limited (NNPCL) raised the price of Premium Motor Spirit (PMS) in Abuja from N875 to N960 per litre. Dangote Petroleum Refinery also increased its ex-depot gantry price by N100, reflecting global crude oil surges.
Industry stakeholders are warning about the wider impact of these increases. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the price hikes could ripple across the economy, affecting transportation, manufacturing, and daily consumer costs. Global commodities data show Brent crude futures jumped 20% and West Texas Intermediate (WTI) crude surged roughly 25% last week, partly due to attacks on Middle East oil infrastructure.
The Middle East conflict has directly impacted oil infrastructure in Iran, Saudi Arabia, Qatar, and other Gulf countries, disrupting processing and supply. Attacks on facilities in Tehran, Ras Laffan Industrial City, and Saudi Arabia’s Eastern Province have highlighted the fragility of global energy supply. While Iran has indicated it will avoid targeting neighboring countries unless provoked, the disruptions continue to influence global crude prices, which in turn affect Nigeria’s fuel market.
source: The sun