The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified what determines fuel pump price in Nigeria, insisting it does not fix petrol prices.
The Authority stated that under the Petroleum Industry Act (PIA) 2021, Premium Motor Spirit (PMS) price is determined by market forces.
NMDPRA made the clarification on Saturday in a statement reacting to public outcry over the recent hike in petrol prices across the country.
The regulator admitted that the latest increase has worsened pressure on households, transporters and businesses.
*Petrol Price Determined By Market Forces Under PIA*
According to NMDPRA, Section 205(1) of the PIA 2021 provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing.
It said by law, it neither fixes pump price nor issues price templates for marketers.
“Pursuant to the PIA 2021, Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions,” NMDPRA said.
The Authority explained that Sections 205(2) to 205(4) allows government to intervene only when there is a formal declaration of market failure.
It noted that no market failure has been declared, while Section 216 empowers it to stop anti-competitive practices, price-fixing and abuse of dominance.
*NMDPRA Steps Up Surveillance Against Diversion, Price-Gouging*
NMDPRA said deregulation does not mean it has abandoned regulation.
It said it is conducting joint operations with the Nigeria Customs Service and other security agencies to curb smuggling and illegal diversion of petrol across border corridors.
It also said it is working with the Federal Competition and Consumer Protection Commission (FCCPC) under an MoU to monitor price-gouging, collusion, under-dispensing and adulterated fuel sales.
The Authority added that it will open feedback channels for Nigerians to report exploitative pricing, promising investigation and sanctions where necessary.
NMDPRA reaffirmed commitment to energy security, fair competition and consumer protection under the PIA framework.
