NMDPRA says it does not fix petrol pump prices

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said it does not fix the retail prices of petrol under the Petroleum Industry Act.

The clarification followed recent increases in the pump price of Premium Motor Spirit, popularly known as petrol, which the regulator acknowledged had placed financial pressure on households, transport workers and businesses.

In a statement on Saturday, the NMDPRA said Section 205 of the Petroleum Industry Act 2021 provides for wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.

“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.

“Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared,” it said.

The NMDPRA, however, said it retained powers under Section 216 of the PIA to prevent anti-competitive practices, price-fixing and abuse of market dominance.

The Authority said it was also working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors and prevent the illegal diversion of petroleum products across Nigeria’s borders.

It added that deregulation did not exempt petroleum operators from regulatory compliance and fair-trade standards.

The NMDPRA said it was collaborating with the Federal Competition and Consumer Protection Commission under a memorandum of understanding to monitor price-gouging, collusion, under-dispensing and compromised product quality.

It also announced plans to open dedicated feedback and reporting channels through which members of the public and industry stakeholders could report irregular pricing and exploitative trade practices for investigation and enforcement.

The Authority said it remained committed to ensuring energy security, promoting fair competition and protecting consumers within the legal framework established by the PIA.