NMDPRA says it does not fix petrol pump prices

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has clarified it does not set petrol pump prices. This followed recent increases in the price of Premium Motor Spirit, or petrol, which have strained households, transport workers, and businesses. In a statement on Saturday, the NMDPRA stated that Section 205 of the Petroleum Industry Act 2021 allows wholesale and retail prices of petroleum products to be set based on unrestricted free-market conditions.

The Authority maintains that it does not determine pump prices or issue administrative price templates. Section 205(2)-(4) of the act restricts government intervention in pricing to exceptional circumstances where there is formal evidence of market failure, which has not been declared. The NMDPRA retains powers under Section 216 to prevent anti-competitive practices, price-fixing, and market abuse.

The Authority is also working with the Nigeria Customs Service and other security agencies to stop the illegal diversion of petroleum products across Nigeria's borders. It emphasized that deregulation does not exempt petroleum operators from regulatory compliance and fair-trade standards. The NMDPRA is collaborating with the Federal Competition and Consumer Protection Commission to monitor price-gouging, collusion, under-dispensing, and compromised product quality, and plans to open channels for the public and industry stakeholders to report irregular pricing and exploitative trade practices.