NMDPRA: we don’t fix petrol pump prices under PIA

By Onu Okorie

Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA has clarified that it does not determine or fix the pump prices of Premium Motor Spirit PMS, popularly known as petrol, under the Petroleum Industry Act PIA 2021.
The clarification came amid renewed concerns over rising petrol prices and the financial pressure being experienced by households, transport operators and businesses across the country.
In a statement, the Authority said the pricing of petroleum products operates under a statutory free-market framework established by the PIA, stressing that it neither fixes pump prices nor issues administrative price templates.
According to NMDPRA, Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.
It further explained that government intervention in petroleum pricing is restricted under Sections 205(2) to 205(4) to exceptional circumstances where there is formal evidence of a declared market failure.
The Authority noted that no such market failure has been declared.
However, NMDPRA stressed that deregulation does not mean petroleum operators are free to engage in anti-competitive practices or exploit consumers.
It said Section 216 of the PIA empowers the regulator to prevent anti-competitive conduct, price-fixing and abuse of market dominance.
Crackdown on smuggling
Against the backdrop of concerns over supply stability and illegal movement of petroleum products, the regulator disclosed that it is working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors.
The joint operation, according to NMDPRA, is aimed at curbing the smuggling and diversion of petroleum products across Nigeria’s borders.
The development places greater emphasis on enforcement and market surveillance as key regulatory tools under the deregulated downstream petroleum market.
NMDPRA, FCCPC step up consumer protection
The Authority also disclosed that it is collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the downstream market.
The agencies are jointly conducting surveillance against alleged price-gouging, collusion, under-dispensing of petroleum products and compromised product quality.
NMDPRA said deregulation does not exempt petroleum operators from regulatory compliance or fair-trade standards.
It added that dedicated public feedback and reporting channels are being opened to allow consumers and industry stakeholders to report irregular pricing and other exploitative trade practices for regulatory investigation and enforcement.
The clarification effectively shifts the focus of the regulator’s role from direct price determination to ensuring that market participants operate within the legal framework, while protecting consumers from anti-competitive conduct. NMDPRA said it remained committed to ensuring energy security, promoting fair competition and protecting consumers within the framework established by the PIA.