NMDPRA cites logistics and crude sourcing as drivers of fuel price volatility

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has identified several factors contributing to fuel price volatility in Nigeria. According to George Ene-Ita, Head of Public Affairs at NMDPRA, the deregulated market is subject to fluctuations driven by crude oil sourcing, single-source domestic refining, and the time lag between procurement and refinery arrival. Additional costs include marine and inland taxes, as well as transportation and landing expenses.

Simultaneously, the regulator is facing criticism from consumer advocates regarding the quality of fuel imports. Advocate Abdulrahman Sani Ibrahim has accused the NMDPRA of failing to prevent the importation of substandard, blended fuel from regions including Dubai. Ibrahim warned that these inferior products pose risks to vehicles and industrial machinery, potentially increasing operating costs for businesses and consumers.

Furthermore, the Dangote Refinery has previously criticized the NMDPRA for approving import licenses, which it claims contributes to increased fuel imports. The NMDPRA stated it is collaborating with the Federal Competition and Consumer Protection Commission to address market issues and aims for a more robust domestic refining ecosystem to stabilize pricing.