The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the pump price of Premium Motor Spirit (PMS), popularly known as petrol.
The Authority said petrol prices are determined by market forces in line with the provisions of the Petroleum Industry Act (PIA) 2021.
In a statement issued by its management, the NMDPRA acknowledged the financial difficulties faced by Nigerians following the recent increase in petrol prices, noting that it was sensitive to the impact on households, transport workers and businesses.
The regulator said it remained committed to measures aimed at stabilising the downstream petroleum market and ensuring reliable product supply.
PIA Prohibits Administrative Price Fixing
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 pricing conditions.
The Authority therefore said it does not set pump prices or issue administrative price templates for petroleum products.
It explained that Sections 205(2) to (4) of the Act allow government intervention in petroleum pricing only under exceptional circumstances where there is formal evidence of a declared market failure.
The NMDPRA said no such market failure has been declared.
It, however, noted that Section 216 of the PIA empowers the Authority to tackle anti-competitive practices, price-fixing and abuse of market dominance within the sector.
The regulator also disclosed that it is working with the Nigeria Customs Service and other relevant security agencies to strengthen surveillance along border corridors.
The initiative, it said, is designed to prevent the illegal diversion and smuggling of petroleum products, improve domestic supply stability and curb illicit cross-border activities.
NMDPRA, FCCPC Move Against Price Gouging
The NMDPRA further disclosed that it is collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under a formal Memorandum of Understanding.
It said the two agencies conduct joint surveillance across the downstream petroleum sector to monitor alleged price gouging, collusion, under-dispensing and the distribution of products that fail to meet required quality standards.
The Authority stressed that regulatory oversight does not exempt petroleum operators from complying with applicable regulations and fair-trade standards.
Regulator Opens Channels for Consumer Complaints.
The NMDPRA said it is establishing dedicated feedback and reporting channels through which members of the public and industry stakeholders can report irregular pricing and other exploitative trade practices.
According to the Authority, complaints received through the channels will be subjected to regulatory investigation and enforcement action where necessary.
The NMDPRA reaffirmed its commitment to fulfilling its statutory mandate of promoting energy security, ensuring fair competition and protecting consumers within the framework of the Petroleum Industry Act.
