The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, says it cannot fix petrol prices because the downstream petroleum sector operates under free-market conditions.
The authority made the clarification on Saturday via an X post amid concerns over recent increases in the pump price of Premium Motor Spirit, commonly known as petrol, which it said had placed financial pressure on households, transport workers and businesses.
NMDPRA said Section 205(1) of the Petroleum Industry Act, PIA, 2021, provides that wholesale and retail prices of petroleum products must be based on unrestricted free-market pricing conditions.
“The Authority does not fix pump prices or issue administrative price templates,” it said.
The regulator explained that government intervention in petrol pricing is allowed only in exceptional circumstances where there is formal evidence of a declared market failure.
“No such market failure has been declared,” NMDPRA said.
However, the authority said Section 216 of the PIA gives it powers to prevent anti-competitive practices, price-fixing and abuse of market dominance.
The clarification comes as petrol prices continue to vary across the country, with NMDPRA previously attributing price volatility to factors including crude oil sourcing, domestic refining arrangements, logistics and transportation costs.
NMDPRA also said it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors and tackle the smuggling and diversion of petroleum products.
The regulator said it was also working with the Federal Competition and Consumer Protection Commission under a memorandum of understanding to monitor price-gouging, collusion, under-dispensing and poor product quality.
It urged consumers and industry stakeholders to report irregular pricing and other exploitative practices for investigation and enforcement.
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