NMDPRA Clarifies Stance: No Hand in Petrol Pump Price Determinations

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has publicly stated that it is not responsible for setting the retail prices of Premium Motor Spirit, commonly known as petrol, as stipulated by the Petroleum Industry Act (PIA). This clarification follows recent increases in petrol pump prices, which the regulator acknowledged have placed considerable financial strain on households, transport workers, and various businesses across the country.

In a statement issued on Saturday, the NMDPRA highlighted that Section 205 of the Petroleum Industry Act 2021 mandates that both wholesale and retail prices of petroleum products are to be determined under unrestricted free-market conditions. The Authority explicitly stated, “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.”

Furthermore, the NMDPRA detailed that government intervention in pricing is strictly limited by Section 205(2)-(4) to “exceptional circumstances where there is formal evidence of declared market failure.” The agency affirmed that “No such market failure has been declared,” thereby maintaining its position on not directly influencing pump prices.

However, the NMDPRA reiterated its powers under Section 216 of the PIA to intervene and prevent anti-competitive practices, price-fixing, and the abuse of market dominance. The Authority also revealed its ongoing collaboration with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors. This effort aims to curb the illegal diversion of petroleum products across Nigeria’s borders.

The agency emphasized that while deregulation is in effect, petroleum operators are still required to adhere to regulatory compliance and fair-trade standards. To this end, the NMDPRA is partnering with the Federal Competition and Consumer Protection Commission (FCCPC) through a memorandum of understanding. This collaboration focuses on monitoring and addressing issues such as price-gouging, collusion among marketers, under-dispensing of fuel, and compromised product quality.

To further empower the public and industry stakeholders, the NMDPRA announced plans to launch dedicated feedback and reporting channels. These platforms will allow individuals to report irregular pricing and exploitative trade practices for investigation and enforcement. The Authority reaffirmed its commitment to ensuring national energy security, promoting fair competition, and protecting consumers within the legal framework established by the PIA.