NMDPRA Moves Against Filling Stations Under-Dispensing Petrol, Threatens Licence Revocation

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched a nationwide crackdown on filling stations accused of under-dispensing petrol and other petroleum products to consumers.

The regulator said it had detected cases of under-dispensing at retail outlets across the country and ordered operators to immediately check, calibrate and verify their fuel dispensers and totalisers.

Under-dispensing means motorists may receive less fuel than the quantity displayed on the pump and for which they have paid.

NMDPRA described the practice as a serious breach of consumer trust and warned that operators found violating dispensing requirements would face regulatory sanctions.

The Authority said its enforcement teams had intensified inspections nationwide, with outlets operating uncalibrated equipment or compromising dispensing accuracy required to take immediate corrective action. Persistent or serious violations could lead to the revocation of operating licences.

The regulator also directed major petroleum marketers’ associations, including the Major Energies Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), to alert their members and support compliance.

The crackdown comes days after NMDPRA said it would intensify surveillance against price-gouging, collusion, under-dispensing and other exploitative practices in the deregulated downstream market.

The Authority has maintained that it does not fix petrol pump prices, with the Petroleum Industry Act providing for wholesale and retail prices to be determined under unrestricted free-market conditions. However, it said deregulation does not exempt operators from regulatory requirements or fair-trade standards.

NMDPRA said it is also working with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing memorandum of understanding to monitor the market for price-gouging, collusion, under-dispensing and compromised product quality.

The latest enforcement drive puts filling station operators on notice that while they are free to operate within the deregulated pricing framework, consumers must receive the exact quantity of petroleum products displayed on dispensing pumps.