By Emma Peter, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the prices of Premium Motor Spirit (PMS), commonly known as petrol, under the Petroleum Industry Act (PIA) 2021.
The Authority made the clarification in a press statement issued by its management in response to concerns over the recent increase in petrol pump prices and the financial pressure being experienced by households, transport operators and businesses across the country.
According to the press statement by the NMDPRA management, the Authority acknowledged the difficulties caused by the recent price increases, stressing that it remained sensitive to the impact of rising fuel costs on Nigerians.
It explained that Section 205(1) of the Petroleum Industry Act provides that wholesale and retail prices of petroleum products are to be determined under unrestricted free-market pricing conditions.
The NMDPRA therefore stated that it neither fixes petrol pump prices nor issues administrative price templates.
The Authority further explained that Sections 205(2)–(4) of the PIA restrict government intervention in petroleum product pricing to exceptional circumstances where there is formal evidence of a declared market failure.
According to the statement, no such market failure has been declared.
However, the Authority noted that Section 216 of the PIA empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance within the petroleum market.
On measures to improve supply stability and address illegal diversion of petroleum products, the NMDPRA said it was working with the Nigeria Customs Service and other relevant security agencies to intensify surveillance along border corridors.
The joint enforcement effort, it said, is aimed at curbing product smuggling and preventing the diversion of petroleum products across Nigeria’s borders.
The regulator also stressed that deregulation does not exempt petroleum industry operators from complying with regulatory requirements and fair-trade standards.
It disclosed that, under a formal Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain joint surveillance to monitor practices such as price-gouging, collusion, under-dispensing and the sale of compromised petroleum products.
The Authority further announced plans to open dedicated public reporting and feedback channels through which members of the public and industry stakeholders can report irregular pricing and exploitative trading practices for regulatory investigation and enforcement.
The NMDPRA reaffirmed its commitment to carrying out its statutory responsibilities, particularly in ensuring energy security, promoting fair competition and protecting consumers within the legal framework established by the PIA.
The clarification comes amid heightened public concern over the cost of petrol and its wider effect on transportation, household expenses and business operations.
