The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the retail pump prices of Premium Motor Spirit (PMS), popularly known as petrol, under the Petroleum Industry Act (PIA) 2021.
The clarification comes amid growing concerns over the recent increase in petrol prices and the financial pressure being experienced by households, transport operators and businesses across the country.
In a statement, the Authority said the prevailing pricing regime was governed by the free-market provisions of the PIA, stressing that it neither fixes pump prices nor issues administrative price templates.
According to the NMDPRA, Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be determined under unrestricted free-market conditions.
It added that Sections 205(2) to (4) permit government intervention only under exceptional circumstances where there is formal evidence of a declared market failure. The Authority noted that no such market failure has been declared.
The regulator further cited Section 216 of the Act, which empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.
Against the backdrop of concerns over supply stability and illegal diversion of petroleum products, the NMDPRA said it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors and curb smuggling.
The Authority also stressed that deregulation does not exempt petroleum operators from regulatory compliance or fair-trade obligations.
It said it was collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under a formal Memorandum of Understanding to monitor the market for alleged price-gouging, collusion, under-dispensing and compromised product quality.
The NMDPRA further announced plans to open dedicated feedback and reporting channels through which members of the public and industry stakeholders can report suspected irregular pricing and exploitative practices for regulatory investigation and enforcement.
The Authority said it remained committed to its statutory responsibilities of ensuring energy security, promoting fair competition and protecting consumers within the legal framework established by the PIA.
