NMDPRA Addresses Rising Petrol Prices Amid Market Pressures

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) explained that the pricing of petroleum products in Nigeria's downstream sector is governed by the unrestricted free market provisions of the Petroleum Industry Act (PIA). The agency acknowledged the financial pressure from the recent petrol price increase, which has surged to N1,500 per litre due to rising global crude oil prices exceeding $100 per barrel.

The NMDPRA clarified that its mandate is to regulate the market and protect consumers rather than set prices. It noted that government intervention in pricing is limited to exceptional circumstances of declared market failure, which has not been established.

The agency is working with the Nigeria Customs Service (NCS) and other security agencies to prevent illegal diversion and smuggling of petroleum products. Additionally, it is collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) to monitor the market for unfair practices.

The NMDPRA expressed sensitivity to the challenges faced by households and businesses due to the price hike.