NMDPRA Addresses Nigeria's Rising Petrol Prices Amid Outrage

Petrol prices in Nigeria have escalated to between N1,400 and N1,500 per litre, prompting public outrage. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued a statement on September 19, asserting that it does not fix pump prices, referencing Section 205(1) of the Petroleum Industry Act, which allows for unrestricted free-market pricing.

The recent price surge was triggered by an increase in the gantry price by N85, from N1,265 to N1,350 per litre, as international crude prices surpassed $100 per barrel. This increase was quickly passed down to consumers, with filling stations in Lagos and Abuja charging up to N1,450.

While the NMDPRA acknowledged the financial strain on households and businesses, it emphasized that it cannot intervene unless there is a formally declared market failure, which has not occurred. The NMDPRA also mentioned its authority to combat price-fixing and market dominance but has yet to demonstrate effective enforcement.