The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not fix petrol pump prices under the Petroleum Industry Act (PIA) 2021.
The Authority made the clarification in a statement titled “NMDPRA Does Not Fix Petrol Pump Price Under the Petroleum Industry Act (PIA),” amid concerns over the recent rise in Premium Motor Spirit (PMS) prices across Nigeria.
NMDPRA acknowledged the financial strain and difficulties caused by the recent petrol price increases, particularly for households, transport workers and businesses.
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It said it was committed to supporting measures that could provide relief as market conditions stabilise.
According to the Authority, Section 205(1) of the Petroleum Industry Act 2021 provides that wholesale and retail prices of petroleum products should be based on unrestricted free-market pricing conditions.
NMDPRA said it therefore does not fix petrol pump prices or issue administrative price templates.
It added that Section 205(2)-(4) restricts government intervention in petroleum pricing to exceptional circumstances where there is formal evidence of declared market failure, stressing that no such market failure has been declared.
The Authority, however, said Section 216 of the PIA empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.
On efforts to ensure supply stability and curb illegal diversion of petroleum products, NMDPRA said it was conducting joint security operations with the Nigeria Customs Service and other relevant security agencies.
The initiative, according to the Authority, is aimed at intensifying surveillance along border corridors and preventing product smuggling.
NMDPRA also said petroleum operators remain subject to regulatory compliance and fair-trade standards despite the deregulated pricing framework.
The Authority disclosed that, under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain joint surveillance to monitor price-gouging, collusion, under-dispensing and compromised product quality.
It said dedicated public feedback and reporting channels were also being opened to enable members of the public and industry stakeholders to report irregular pricing or exploitative trade practices for immediate regulatory investigation and enforcement.
“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 Authority said.
