NMDPRA: Fuel Price Hikes Driven by Market Forces

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that fluctuations in fuel pump prices are driven by market dynamics, specifically supply and demand forces, rather than regulatory actions. Georg En Ita, a spokesperson for NMDPRA, explained in an interview that the recent increase in fuel prices, which have risen from approximately N875-N880 per liter to between N960 and N1,000 per liter in independent markets, is linked to ongoing crises in the Middle East.

The Nigerian National Petroleum Company has set a selling price limit of N960 per liter. The NMDPRA emphasized that the variations in pump prices across the country are a result of market conditions and that the current administration has fully deregulated the downstream petroleum sector.

This deregulation aims to allow market forces to determine prices, encourage competition, and increase investment in Nigeria's downstream oil and gas sector.