NMDPRA Rejects Petrol Price Fixing Amid Market Volatility

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not fix petrol pump prices or issue administrative price templates. The regulator stated that under Section 205(1) of the Petroleum Industry Act (PIA) 2021, wholesale and retail prices must be based on unrestricted free-market conditions. Government intervention is only permitted during declared market failures, which the authority confirmed has not occurred.

This regulatory stance follows a surge in domestic fuel costs, with prices in Abuja reaching between N1,310 and N1,450 per litre. The increase was driven by the Dangote Petroleum Refinery raising gantry prices from N1,265 to N1,350 per litre, citing shipping disruptions in the Strait of Hormuz and rising international crude prices. However, recent declines in Brent and West Texas Intermediate crude prices have since placed pressure on refiners and marketers to lower costs.

To mitigate financial strain on consumers, the NMDPRA is collaborating with the Nigeria Customs Service to curb illegal cross-border smuggling and the Federal Competition and Consumer Protection Commission to monitor for price-gouging, collusion, and under-dispensing. The agency is also establishing public reporting channels to investigate exploitative trade practices.