NMDPRA clarifies it cannot fix petrol prices under PIA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not fix petrol pump prices, citing the Petroleum Industry Act (PIA) 2021. Under Section 205(1) of the Act, wholesale and retail prices are determined by unrestricted free-market conditions. The regulator stated that government intervention is only permitted in exceptional circumstances where formal evidence of a declared market failure exists, noting that no such failure has been declared.

The clarification follows a recent surge in Premium Motor Spirit (PMS) prices, with some regions reporting costs between N1,400 and N1,500 per litre. This increase is attributed to rising international crude oil benchmarks and adjustments by the Dangote Petroleum Refinery. The price hikes have placed significant financial pressure on Nigerian households, transport workers, and businesses.

While the NMDPRA cannot administratively set prices, it is intensifying efforts to prevent exploitative practices. The authority is collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) to monitor for price-gouging, collusion, and under-dispensing. Additionally, the NMDPRA is working with the Nigeria Customs Service and other security agencies to increase surveillance along border corridors to curb the illegal diversion and smuggling of petroleum products.