NMDPRA explains why petrol price volatility persists

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is explaining why petrol prices continue to fluctuate. Head of Public Affairs George Ene-Ita outlined the complexities during an interview with NAN in Abuja. He explained that the ongoing price increases are due to various factors including crude oil sourcing, single-source domestic refining, logistics, and transportation costs.

The volatility is a result of the deregulated nature of petrol prices, which are subject to market fluctuations. Ene-Ita highlighted the time lag between crude oil procurement and its arrival at refineries as another factor in pricing. Additional costs such as marine and inland taxes for movement and supply of petroleum products also contribute to the final price.

He emphasized that addressing these issues requires a more robust, competitive, and sustainable domestic refining ecosystem. NMDPRA is working with stakeholders and agencies like the Federal Competition and Consumer Protection Commission (FCCPC) to ensure price equilibrium and parity at the final mile. They are calling for government intervention to alleviate the burden of high crude costs during periods of international market volatility, as oil marketers have expressed concerns over rising petrol prices linked to the Middle East conflict.