We don’t set petrol pump prices, NMDPRA clarifies amid rising costs
Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA
Abdullateef Fowewe
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stressed that it does not fix the retail pump prices of petrol under the Petroleum Industry Act (PIA) 2021, even as Nigerians grapple with recent increases in Premium Motor Spirit (PMS) prices.
In a press statement released on Saturday, the regulator acknowledged the hardship caused by the hikes.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acknowledges the deep financial strain and difficulties many Nigerians are experiencing following the recent rise in Premium Motor Spirit (PMS) pump prices.
“We are fully sensitive to the pressure this places on households, transport workers, and businesses across the country, and we share in the commitment to seeing relief take root as market conditions stabilise,” the statement said.
The Authority pointed to the legal framework governing the downstream sector.
“Pursuant to the Petroleum Industry Act (PIA) 2021: Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions. The Authority does not fix pump prices or issue administrative price templates.
“Section 205(2)–(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared,” the statement noted.
It further noted that Section 216 empowers it to prevent anti-competitive practices, price-fixing, and abuse of market dominance.
Nigeria’s fuel market has operated under full deregulation since the removal of the petrol subsidy in May 2023 and the full implementation of the PIA 2021, which shifted pricing from government-controlled templates to market forces driven by supply, demand, international crude prices, landing costs, refining, and distribution expenses.
In recent weeks, pump prices have climbed significantly, Dailyeconomy observed.
Reports indicate prices reaching as high as ₦1,380–₦1,430 per litre in major cities such as Lagos and Abuja, with some northern locations recording figures up to ₦1,850 per litre.
These increases followed successive upward adjustments by Dangote Petroleum Refinery (which raised its gantry price to around ₦1,350 per litre) and other depots and marketers, amid higher global crude oil prices and elevated replacement costs.
The NMDPRA said it is intensifying joint security efforts with the Nigeria Customs Service and other agencies to curb illegal cross-border diversion and smuggling of petroleum products.
It is also collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing memorandum of understanding to monitor against price-gouging, collusion, under-dispensing, and poor product quality.
The Authority announced the opening of dedicated public feedback and reporting channels for Nigerians and industry stakeholders to report irregular or exploitative pricing for prompt investigation and enforcement.
“The NMDPRA remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition, and protect consumers within the PIA’s legal framework,” the statement concluded.
