We Don't Fix Petrol Prices

….opens channels to report “exploitative” petrol pricing, smuggling

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it does not fix petrol pump prices under the Petroleum Industry Act (PIA) 2021, even as it announced new measures against smuggling and price abuse following the recent rise in Premium Motor Spirit (PMS) prices.

The NMDPRA said it is opening dedicated channels for the public and industry stakeholders to report irregular pricing or exploitative trade practices for immediate investigation and enforcement, adding that it remained steadfast in fulfilling its mandate to ensure energy security, foster fair competition and protect consumers within the PIA’s legal framework.

In a notice posted on its X handle and signed by its management, the authority acknowledged the financial strain on households, transport workers and businesses. It said it shared the commitment to seeing relief take root as market conditions stabilise.

The NMDPRA cited Section 205(1) of the PIA, which says wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions. It said the authority does not fix pump prices or issue administrative price templates.

It added that Section 205(2)–(4) limits government intervention in pricing to exceptional circumstances where there is formal evidence of declared market failure. “No such market failure has been declared,” it said. Section 216, it noted, empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.

To ensure supply stability and curb illegal cross-border diversion, the authority said it is conducting a joint security effort with the Nigeria Customs Service and other agencies to step up surveillance along border corridors.

It stressed that deregulation does not exempt operators from regulatory compliance or fair trade standards. Under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain joint surveillance against price-gouging, collusion, under-dispensing and compromised product quality.

The statement followed several weeks of pressure on petrol pump prices. In July, marketers accused major importers of fixing imported petrol at about N1,350 per litre, well above the price reportedly offered by Dangote Refinery.