NMDPRA Declares It Does Not Set Petrol Prices Amidst Rise

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clarified that it does not set petrol pump prices, as the Petroleum Industry Act (PIA) 2021 mandates that pricing is determined by market conditions. In a statement, the NMDPRA acknowledged the financial strain on Nigerians due to recent increases in Premium Motor Spirit (PMS) prices.

It emphasized its sensitivity to the pressures faced by households, transport workers, and businesses. The NMDPRA cited Section 205(1) of the PIA, which stipulates that wholesale and retail prices should reflect unrestricted free-market pricing.

The authority also noted that government intervention in pricing is limited to exceptional circumstances, which have not been declared. Additionally, the NMDPRA is collaborating with the Nigeria Customs Service and security agencies to enhance surveillance against smuggling and illegal diversion of petroleum products.

It reiterated that deregulation does not exempt operators from regulatory compliance and fair trade standards, and it maintains joint surveillance with the FCCPC against price-gouging and compromised product quality.