The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says petrol pump prices are determined by market forces and are not fixed by the regulator under the Petroleum Industry Act (PIA) 2021.
The authority said this in a statement on Saturday in response to concerns over the recent increase in petrol prices.
NMDPRA acknowledged the financial pressure the rising fuel prices were placing on Nigerians, particularly households, transport workers and businesses.
It said Section 205(1) of the PIA stipulates that wholesale and retail prices of petroleum products should be based on unrestricted free-market pricing conditions.
The regulator explained that this provision means it does not set pump prices or issue administrative pricing templates.
“Pursuant to the PIA 2021, Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions.
“Section 205(2)–(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared.
“Section 216 empowers the authority to prevent anti-competitive practices, price-fixing, and the abuse of market dominance,” it said.
The authority said it was also conducting joint security operations with the Nigeria Customs Service and other relevant agencies to strengthen surveillance along border corridors.
According to NMDPRA, the operations are aimed at curbing the illegal cross-border diversion of petroleum products and maintaining supply stability.
The regulator stressed that deregulation does not exempt petroleum operators from complying with regulatory requirements or fair-trade standards.
It said that, under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies conduct joint surveillance to monitor price-gouging, collusion, under-dispensing and compromised product quality.
NMDPRA also said it was establishing dedicated feedback and reporting channels through which members of the public and industry stakeholders could report irregular pricing and exploitative trade practices.
It said such reports would be subjected to regulatory investigation and enforcement where necessary.
“NMDPRA remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition and protect consumers within the PIA’s legal framework,” the authority said.
NAN
