NMDPRA: We don’t fix petrol pump price

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it does not fix petrol pump prices, insisting that the Petroleum Industry Act (PIA) 2021 leaves pricing of petroleum products to the market.

In a statement signed by its management, the regulator responded to public anger over the recent rise in Premium Motor Spirit (PMS) pump prices, acknowledging the financial strain on Nigerians.

“We are fully sensitive to the pressure this places on households, transport workers, and businesses across the country,” the Authority said, adding that it shares “the commitment to seeing relief take root as market conditions stabilise.”

Citing Section 205(1) of the PIA, the NMDPRA said wholesale and retail prices of petroleum products are to be based on unrestricted free-market pricing conditions.

“The Authority does not fix pump prices or issue administrative price templates,” the statement said.

The regulator noted that Section 205(2)–(4) limits government intervention in pricing to exceptional circumstances, where there is formal evidence of declared market failure. “No such market failure has been declared,” it said.

It added that Section 216 of the Act empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.

On supply stability, the NMDPRA said it is working with the Nigeria Customs Service and other security agencies to step up surveillance along border corridors to prevent smuggling and illegal cross-border diversion of petroleum products.

The Authority stressed that deregulation does not remove obligations on operators. “Deregulation does not exempt operators from regulatory compliance or fair trade standards,” it said.

Under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), the two agencies maintain joint surveillance against price-gouging, collusion, under-dispensing and compromised product quality, the NMDPRA said.

“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.