The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or directly fix petrol pump prices in Nigeria, saying prices are guided by free-market conditions under the Petroleum Industry Act (PIA) 2021. The clarification comes as motorists and businesses continue to feel the impact of rising petrol prices across the country.
According to the regulator, Section 205(1) of the PIA provides that wholesale and retail petroleum product prices should be based on unrestricted market conditions. NMDPRA said government intervention is only permitted in exceptional circumstances where there is formal evidence of market failure, adding that no such market failure has currently been declared.
Despite the deregulated pricing structure, NMDPRA stressed that petroleum marketers remain subject to regulatory requirements and fair-trade standards. The authority said Section 216 of the PIA empowers it to tackle anti-competitive practices, price-fixing and abuse of market dominance, while its partnership with the Federal Competition and Consumer Protection Commission (FCCPC) is focused on monitoring issues such as price-gouging, collusion and under-dispensing.
The regulator also disclosed that it is working with the Nigeria Customs Service and other security agencies to strengthen surveillance along border corridors and curb the illegal diversion and smuggling of petroleum products. NMDPRA said these measures are aimed at improving supply stability while protecting consumers from exploitative practices that could further increase pressure on households, transport operators and businesses.
The clarification comes amid renewed increases in petrol pump prices, with reports of prices reaching as high as N1,450 per litre in Abuja and around N1,400 per litre in Lagos. NMDPRA said it remains committed to ensuring energy security, promoting fair competition and protecting consumers, while encouraging the public and industry stakeholders to report irregular pricing and other exploitative practices through its dedicated feedback channels.
source: The cable