Why we can’t fix petrol prices in Nigeria – NMDPRA

The Nigerian Mainstream and Downstream Petroleum Regulatory Authority, NMDPRA, has explained why it cannot fix petrol prices in Nigeria. In a statement posted on its verified X handle, the agency revealed that the Petroleum Industry Act, PIA, 2021, restricts government intervention in price-setting to exceptional circumstances, such as a formal declaration of market failure.

NMDPRA is only authorized to prevent anti-competitive practices, price-fixing, and abuse of market dominance. However, the agency is actively collaborating with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors, aiming to prevent product smuggling, ensure consumer protection, and monitor market conditions.

Under the terms of its memorandum of understanding with the Federal Competitive and Consumer Protection Commission, FCCPC, NMDPRA maintains rigorous joint surveillance to detect price-fixing, collusion, and compromised product quality. Despite the recent surge in petrol pump prices causing significant financial strain for many Nigerians, the NMDPRA reaffirms its commitment to fulfilling its statutory mandate to secure energy, foster fair competition, and protect consumers within the bounds of the PIA.

The agency acknowledges the pressures faced by households, transport workers, and businesses and shares the desire for relief as market conditions stabilize. According to the statement, Section 205 of the PIA stipulates that wholesale and retail prices of petroleum products should be based on unrestricted free market pricing conditions.

The NMDPRA does not set pump prices or issue administrative price templates. Section 205(2)-(4) further restricts government intervention in pricing, reserving such authority for exceptional circumstances where formal evidence of declared market failure exists, which has not been declared.