NMDPRA implements new regulations for Nigeria's petroleum sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is implementing several measures to stabilize and regulate the nation's petroleum sector. The regulator has clarified that under the Petroleum Industry Act 2021, it does not fix petrol pump prices, which are instead determined by free-market conditions. This follows rising costs, with reports of prices reaching N1,450 per litre in Abuja.

To ensure market integrity, the NMDPRA has proposed 138 new regulations aimed at preventing anti-competitive practices, such as price-fixing, collusion, and the abuse of market dominance. These rules also seek to ensure non-discriminatory access to critical infrastructure like pipelines and storage terminals. The authority is also working with the Federal Competition and Consumer Protection Commission to monitor price-gouging and under-dispensing.

In response to reports of fuel under-dispensing at retail outlets, the NMDPRA has ordered nationwide calibration of fuel dispensers, warning that stations found short-changing consumers face sanctions, including license revocation.

Additionally, the NMDPRA has approved the importation of 830,000 metric tonnes of petrol for the fourth quarter to ensure supply stability during the festive season. This decision has drawn scrutiny from the Dangote Petroleum Refinery, which is currently challenging the necessity of such import licenses in court, arguing that domestic refining capacity should suffice.