The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it does not fix the pump price of petrol, insisting that pricing of petroleum products is governed by market forces under the Petroleum Industry Act (PIA) 2021.”
NMDPRA has stated that it does not fix petrol pump price under the Petroleum Industry Act (PIA),’ acknowledging the financial strain many Nigerians are facing following the recent rise in Premium Motor Spirit (PMS) pump prices.”
The authority said Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products are based on unrestricted free market pricing conditions, and that the Authority does not fix pump prices or issue administrative price templates.”
“It added that Sections 205(2) to (4) restrict government intervention in pricing to exceptional circumstances where there is formal evidence of declared market failure, noting that no such market failure has been declared.”
According to NMDPRA, Section 216 of the Act empowers it to prevent anti-competitive practices, price-fixing, and the abuse of market dominance.
On inter-agency enforcement, NMDPRA said it is conducting a joint security effort with the Nigeria Customs Service and other relevant security agencies to intensify surveillance along border corridors and prevent product smuggling, in order to address supply stability and curb illegal cross-border product diversion.
The Authority said deregulation does not exempt operators from regulatory compliance or fair trade standards, as part of measures on consumer protection and market monitoring.
In a related statement, the Authority said it maintains a formal Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC), under which both agencies conduct joint surveillance against price-gouging, collusion, under-dispensing, and compromised product quality.
It said it is opening a dedicated feedback and reporting channels to enable members of the public and industry stakeholders to report irregular pricing or exploitative trade practices directly for immediate regulatory investigation and enforcement.
The statement, signed by the Management of NMDPRA, said the Authority remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition, and protect consumers within the PIA’s legal framework.