NMDPRA threatens to revoke licence of stations under-dispensing PMS

22 Sept 2026
By Firdaus Jibril

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has threatened to revoke the licenses of petrol stations under-dispensing products to motorists.

The Authority, in a directive to retail outlet operators, said it had observed incidents of under-dispensing of petroleum products at filling stations across the country.

It described the practice as a serious breach of consumer trust and directed all retail outlets to immediately calibrate and verify their fuel dispensers and totalizers.

The exercise is intended to ensure that dispensing equipment measures products accurately and that motorists receive the quantity of petrol for which they have paid.

NMDPRA said it had intensified inspections and enforcement activities nationwide as part of efforts to protect consumers and improve transparency in petroleum product transactions.

According to the Authority, outlets found to be under-dispensing, operating equipment that is improperly calibrated or otherwise compromising dispensing accuracy will be required to take immediate corrective action.

Persistent or serious violations, it warned, will attract appropriate sanctions, which could extend to the revocation of the affected outlet’s licence in line with NMDPRA regulations.

The regulator also called on the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to notify their members of the directive and support compliance.

The move comes amid heightened scrutiny of activities in the downstream petroleum market, particularly as motorists continue to contend with changes in petrol prices and concerns over how much product they receive for the money they spend.

NMDPRA had earlier said it was intensifying surveillance against practices including under-dispensing and other forms of consumer exploitation in the petroleum market.

The regulator has also maintained that it does not determine petrol pump prices under the country’s deregulated downstream market, but has a responsibility to enforce regulatory standards and protect consumers.

The latest directive therefore shifts the focus from the price displayed at filling stations to another part of the transaction: whether motorists are receiving the quantity shown on the pump after making payment.

For consumers, accurate dispensing is particularly significant in a market where changes in petrol prices can substantially affect household and transportation costs.

NMDPRA said the calibration and verification exercise would help guarantee accurate measurement across retail outlets, while its intensified inspections are expected to identify stations that fail to comply with the requirements.

The Authority said it remained committed to protecting consumers, promoting transparency and upholding the integrity of petroleum product transactions nationwide.